Toussaint Capital Partners, LLC

Friday, July 1, 2011

admin — Fri, 01 Jul 2011 13:04:38 +0000

CREDIT MARKETS
Treasuries:
Treasury prices eased on Thursday, pushing yields up for a fourth straight day, as the Federal Reserve conducted its last bond buyback, bringing an end to its second round of quantitative easing. However, month-end demand for bonds helped some debt to recover lost ground. The Federal Reserve Bank of New York bought $4.91 billion in Treasury debt, shutting down the program that’s the centerpiece of the central bank’s loose monetary policy. Yields on 10-year notes turned up by 5 basis points to 3.16%. This has been one of the roughest weeks for the benchmark with 10 year bonds yields jumping 24 basis points. Two year yields were mostly flat at .46%. Yields on 30-year bonds were also unchanged at 4.38%. The Fed has bought an additional $600 billion in Treasuries, which some analysts say has been in the hopes that investors would use the money to buy assets riskier than Treasuries such as equities, emerging markets, commodities and corporate bonds.
Economic Data: U of Michigan Confidence, ISM Manufacturing and Total Vehicle Sales.

Commentary/New Issues

Corporate:
Nothing

Agency:
$5B, FREDDIE MAC, 1.00%, 8/27/14, +29bps

ABS:
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.

Wednesday, June 29, 2011

admin — Wed, 29 Jun 2011 13:25:38 +0000

CREDIT MARKETS
Treasuries:
Treasury prices declined further Tuesday, selling off more briskly after the government’s sale of 5-year notes garnered weak investor interest. The Treasury Department sold $35 billion in 5-year notes at a yield of 1.615%, a little higher than traders anticipated. Bidders offered to buy 2.59 times the amount of debt sold, compared to an average of 2.86 times at the last four comparable sales. Indirect bidders purchased 37.6% of the sale, versus an average of 40.9%. Direct bidders bought another 10.5%, compared to 9.8% on average. After the buyback, yields on 2-year notes which move inversely to prices, rose 8 basis points to 0.48%, the biggest move since March. Yields on 10-year notes increased 10 basis points to 3.03%, from 2.99% before the auction. On Wednesday, there will be an auction of $29 billion of 7 year notes.
Economic Data: MBA Mortgage Applications and Pending Home Sales.

Commentary/New Issues

Corporate:
$1.25B, HSBC, AAA/AAA, 1.625%, 7/7/14, +92.75bps
$300MM, NATIONAL RETAIL PROPERTIES, BAA2/BBB, 5.50%, 7/15/21, +265bps

Agency:
Nothing

ABS:
Nothing

Friday, June 24, 2011

admin — Tue, 28 Jun 2011 18:34:17 +0000

CREDIT MARKETS
Treasuries:
Treasury prices slid further Monday after the government sold 2-year notes at a record-low yield amid weak appetite for U.S. debt while a rebound in stocks also pressured bond prices. The U.S. Treasury sold $35 billion in 2-year notes at 0.395%. The previous low was set at an auction on Oct. 26, when two-year debt sold at 0.40%. Investors offered to buy 3.08 times the amount of debt sold, with indirect bidders, purchasing 22% and direct bidders buying 13.5%. The Treasury will sell $35 billion of five-year notes tomorrow. Yields on 10-year notes rose 6 basis points to 2.92%. Thirty-year bond yields increased 11 basis points to 4.29%. Equities recovered from last week’s rout to kick off the week higher, dragging Treasuries lower. The bond market paid little attention to the Fed’s latest bond buyback of about $4.6 billion, One of the last purchases as part of the central bank’s $600 billion bond-buying plan that’s served as the centerpiece of its latest policy attempt to keep the economy growing. The central bank has three more buybacks scheduled this week, marking the completion of the QE2 plan.
Economic Data: S%P Case-Shiller Home Price Index and Consumer Confidence.

Commentary/New Issues

Corporate:
Dolphin energy will be coming to market.
Economic data:
Personal Incom
Personal Spending
PCE Deflator
PCE Core MoM
PCE Core YoY
Dallas Fed Manufacturing Activity

Agency:
Nothing

ABS:
Nothing

Tuesday, June 28, 2011

admin — Tue, 28 Jun 2011 14:13:52 +0000

Commentary/New Issues

Corporate:
$3B, AMGEN, A3/A+, $750MM, 2.30%, 6/15/16, +90bps; $1B, 4.10%, 6/15/21, +120bps; $1.25B, 5.65%, 6/15/42, +140bps
$325MM, KILROY REALTY, BAA3/BBB+, 4.80%, 7/15/18, +265bps
$250MM, CARPENTER TECHNOLOGY, BAA3/BBB, 5.20%, 7/15/21, +230bps

Agency:
Nothing

ABS:
Nothing

Thursday, June 23, 2011

admin — Fri, 24 Jun 2011 12:52:00 +0000

CREDIT MARKETS
Treasuries:
Treasury prices slipped Wednesday as the Federal Reserve held rates steady and cut its forecast for economic growth while lifting expectations for higher inflation and unemployment. Yields on 10-year Treasury notes /quotes/zigman/4868283 10_YEAR -0.17%, which move inversely to prices, were up 1 basis point at 3%. Yields on 2-year Treasurys /quotes/zigman/4868354 2_YEAR +1.06% were flat at 0.37%. The Federal Reserve cut its economic growth forecast for the second time this year, reducing its outlooks for 2011 and 2012.

Commentary/New Issues

Corporate:
Hydro Quebec plans 5yr global deal.
JPM launched 2.5B 5yr deal@+165bp.
Economic Date:
Initial Jobless Claims
New home sales
New home sales MoM
Chicago Fed National Activity Index
Continuing Claims.

Agency:
Nothing

ABS:
Nothing

Wednesday, June 22, 2011

admin — Wed, 22 Jun 2011 14:11:32 +0000

CREDIT MARKETS
Treasuries:
Treasury prices pared a decline on Tuesday, after benchmark 10-year yields rose back toward 3%, as traders took a more cautious stance ahead of a key vote by the Greek parliament. Still, the euro gained against the dollar and U.S. stocks rose, indicating investors felt more comfortable with the near-term outlook for Greece and are less interested in the relative safe-haven status of U.S. bonds. Yields on 10-year notes /quotes/zigman/4868283 10_YEAR +0.78% , which move inversely to prices, rose 2 basis points to 2.98%. A basis point is 1/100th of a percentage point. The security’s yield fell as low as 2.88% last week, the lowest since December. Yields on 2-year notes/quotes/zigman/4868354 2_YEAR -1.30% were little changed at 0.38%, remaining within hailing distance of recent levels that were almost their lowest ever. Thirty-year bond yields /quotes/zigman/4868063 30_YEAR +0.38% added 1 basis point to 4.21%.

Commentary/New Issues

Corporate:
Lincoln Nation price 300mm of a 10yr coming to the market @+190bps.
Economic data due is mba mortage applications, house price index MoM, FMOC rates decision.

Agency:
Nothing

ABS:
Nothing

Tuesday, June 21, 2011

admin — Tue, 21 Jun 2011 16:27:53 +0000

CREDIT MARKETS
Treasuries:
Treasury prices pared losses Monday in volatile trading in a tight range as the dollar gave up its advance against the euro and traders reassessed the outlook for Greece receiving bailout funding from Europe. Benchmark 10-year yields fell to the lowest level since December during early U.S. trading hours after euro-zone finance ministers put off announcing a bailout plan for Greece and said Greek politicians had to first take steps toward approving additional spending cuts. Yields on 2-year notes/quotes/zigman/4868354 2_YEAR 0.00% declined to 0.35% — just a whisper above a record low touched recently. They recently slipped to 0.37%, down 2 basis points on the day. Thirty-year bond yields /quotes/zigman/4868063 30_YEAR -0.14% edged down 1 basis point to 4.19%.

Commentary/New Issues

Corporate:
Danaher corp priced 500mm of a 5yr priced at +80bp, 400mm of a 3yr price at +65bp, 300mm of a 2yr frn pricing @3ml +25bp and 600mm of a 10yr that priced at +90bps. Economic news today will be existing homes sales and existing home sales MoM.

Agency:
Nothing

ABS:
Nothing

Monday, June 20, 2011

admin — Tue, 21 Jun 2011 16:11:39 +0000

CREDIT MARKETS
Treasuries:
Treasury prices were mixed on the day after Europe’s political leaders appear more likely to agree on a way to help Greece bear its debt burden. German Chancellor Angela Merkel said Friday that a new aid program is needed for Greece and the participation of the private sector in it should be voluntary. Enthusiasm for the deal initially boosted stocks, then waned, leaving benchmark indexes up only about 0.1%. Treasuries have rallied this quarter, pushing 10-year note yields down 50 basis points, on economic reports showing a slowdown in global growth as well as concern Europe is struggling to contain its debt crisis. The IMF cut its forecast for U.S. growth in 2011 for the second time in two months, warning that setbacks pose growing threats to the world economy, along with potential contagion from Europe’s debt crisis.
Economic Data: Existing Home Sales, FOMC Rate Decision, Initial Jobless Claims, Continuing Claims, New Home Sales and Durable Good Orders.

Commentary/New Issues

Corporate:
$600MM, AMERICAN EXPRESS CREDIT, A2/BBB+, 6/24/14, 3ML+85 bps

Agency:
Nothing

ABS:
Nothing

Friday June 17, 2011

admin — Fri, 17 Jun 2011 13:03:45 +0000

CREDIT MARKETS
Treasuries:
Treasury prices rose pushing yields on 10 year notes to this year’s low, on speculation Greece will struggle to avoid default even as the International Monetary Fund reiterated its support. Bond prices shifted in a tight range after a weak U.S. manufacturing report and a pair of better-than-expected U.S. reports on jobless claims and housing starts. Yields on 10-year notes fell 5 basis points to 2.92%. Two-year yields closed at .38%. Thirty-year yields fell 3 basis points to 4.17%, after falling to 4.13% earlier. Investors are again looking for what a Greek default may mean to them, banks around the world and central banks, and whether it will begin a domino effect in other heavily indebted countries. Economic Data: U of Michigan Confidence and Leading Indicators.

Commentary/New Issues

Corporate:
Nothing

Agency:
Nothing

ABS:
Nothing

Thursday, June 16, 2011

admin — Thu, 16 Jun 2011 16:04:47 +0000

CREDIT MARKETS
Treasuries:
Treasury prices extended gains on Wednesday, pushing 10-year yields down by the most since November, as escalating concerns about Greece’s ability to pay its debt had investors fleeing stocks, the euro and European debt. Yields on 10-year notes fell 13 basis points to 2.97% — the biggest drop since November. Yields on 2-year notes declined 6 basis points to 0.38%. Thirty-year-bond yields often more sensitive to inflation expectations, fell 11 basis points to 4.20%. The government’s consumer-price index for May rose 0.2%, or 0.3% when food and energy are excluded. Both inflation figures are a little higher than analysts predicted. Moody’s Investors Service said it may downgrade the ratings of three French banks because of their exposure to Greek debt.
Economic Data: Initial Jobless Claims, Continuing Claims, Housing Starts and Building Permits.

Commentary/New Issues

Corporate:
Nothing

Agency:
$3B, FANNIE MAE, .50%, 8/9/13, +17bps

ABS:
$518MM, PFAST 11-1