CREDIT MARKETS

Treasuries:
Treasury notes dropped for the first time in five days as the Institute for Supply Management reported that service industries expanded in February more than economists forecast. The yield on the three-year security increased from the lowest level in three weeks before the government announces today the size of next week’s estimated $74 billion note and bond auctions. U.S. debt pared losses as the Federal Reserve said in its regional assessment that real estate and loan demand were weak and the pace of hiring was soft. The yield on the benchmark 10-year note increased 1 basis point to 3.62 percent. The three-year note’s yield rose 1 basis point to 1.32 percent from 1.31 percent, the lowest since Feb. 9. The five- year yield was little changed at 2.27 percent after earlier increasing 4 basis points. Consumer spending increased in many regions, the Fed said in its Beige Book business survey, published two weeks before the Federal Open Market Committee meets to set monetary policy. Economic news for tomorrow will focus on chain store sales, weekly jobless claims, pending home sales and factory orders.

Commentary/New Issues
Corporate:
$95M WESTERN MASS ELECTRIC Baa2/BBB 5.10% 3/1/20 +150bp
$325M PUGET SOUND ENERGY Baa1/A- 5.795% 3/15/40 +120bp
$350M SOUTHWESTRN ELECTRIC PWR Baa3/BBB 6.20% 3/15/20 +160bp
$500M JOHN DEERE CAPITAL A2/A 2.95% 3/9/15 +68bp
$2B TIME WARNER 2-PT Baa2/BBB $1.4B 4.875% 3/15/20 +130bp; $600M 6.20% 3/15/40 +162bp

ABS:
Nothing

Agency:
$5.5BLN FREDDIE MAC 1.625% 4/15/13 +31.5bp

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Short-term Treasury prices rose on Tuesday, while longer-dated debt erased a small, earlier decline as investors waded through more news out of Greece. Longer-term Treasuries were under pressure earlier amid reports that further budget cuts will be forthcoming from Greece, easing fears about a new debt-driven meltdown and reducing the relative investment appeal of U.S. debt. Late in the session, U.S. stocks pared their gains and the U.S. dollar fell further as the euro turned positive. Yields on 2-year notes fell 2 basis points to 0.79, erasing a prior move higher. Yields on 10-year notes were little changed at 3.61. Greek bond prices improved, pushing yields down, as Athens is expected to announce more ways to reduce its deficit before bringing a much-needed bond deal to the market. All eyes are focused on the nonfarm payroll report on Friday, a loss of 50K jobs is expected for February.

Commentary/New Issues
Corporate:
$300M PSE&G A2/A- 5.50 % 3/1/40 +95bp
$1B KEXIM A2/A 4.125% 9/09/15 +195bp
$4BLN DEXIA CREDIT LOCAL Aa1/AA+ $1.75BLN 3/5/13 3ML+40bp; $2.250BLN 2.00% 3/5/13 +71.2bp
$2B REPUBLIC OF SOUTH AFRICA A3/BBB+ 5.50% 3/9/20 +197bp

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasury 10-year note yields were near the lowest level in almost three weeks as a drop in crude oil made government debt more attractive. Bonds were supported as a gauge of inflation watched by the Federal Reserve was steady in January. The difference between the rates on 2- and 10-year notes was little changed after four days of decreases on speculation last week’s flattening in the Treasury yield curve was too much for the market to sustain. The 10-year note yield fell 1 basis points, to 3.61 percent after touching 3.58 percent on Feb. 26, the lowest since Feb. 9. The 2-year note’s yield slid 1 basis point to 0.80 percent. The spread between 2- and 10-year note yields was 280 basis points after narrowing by 5.7 basis points last week, the most since the beginning of the year. The difference widened to a record level of 294 basis points on Feb. 18. Economic news for tomorrow will focus on auto sales.

Commentary/New Issues
Corporate:
$2B GOLDMAN SACHS A1/A 5.375% 3/15/20 +190bp
$500M US BANCORP Aa3/A+ 3.15% 3/04/15 +90bp
$1.5B REPUBLIC SERVICES 2-PT Baa3/BBB $850M 5.00% 3/1/20 +140bp; $650M 6.20% 3/1/40 +165bp

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

Coupon: 5.375%

Maturity: 3/15/2020

Deal Size: $2,000,000,000

Rating: A1/A

Warrants: 121,792,790

$ Amount: $310,571,615

Warrants: 150,375,940

$ Amount: $1,255,639,099

Coupon: 8.50%

Maturity: 3/30/40

Shares: 20,000,000

Total $ Amounts: $2,000,000,000