Week of August 14, 2011 thru August 20, 2011

US News Events Calendar

--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT ------------------------------------------------------------------------

22-24-Aug Vice President Joe Biden, after visiting China, travels to Japan and Mongolia.

24-Aug 1330/0930 U.S. Congressional Budget Office updates its budget and economic outlook.

26,27-Aug -- Annual Federal Reserve Bank of Kansas City symposium at Jackson Hole, Wyo. Fed Chairman Ben

S&P Surprises, Gives U.S Farm Credit Sys Good Marks -3

WASHINGTON (MNI) - The following is the third and final section of
excerpts from Standard & Poor's analysis of the U.S. Farm Credit System,
published late Friday:

Market risk

Market risk tolerance is small across FCS. The management of both
interest-rate risk and credit risk across the investment portfolios is
adequate.

All financial entities are exposed to interest-rate risk. We
consider the System's and individual banks' approach to asset-liability
management adequate, reflecting overall conservative risk tolerance and

S&P Surprises, Gives U.S Farm Credit Sys Good Marks -2

WASHINGTON (MNI) - The following is the second of three sections of
excerpts from Standard & Poor's analysis of the U.S. Farm Credit System,
published late Friday:

Extraordinary Government Support: Very Likely

We reflect our views on the importance of the GREs' role to the
government through implementation of our GRE ratings criteria. We
believe the role of the FCS is very important to the government. We
define the strength of the link between it and the U.S. government as
very strong, leading to a very high likelihood of support. The System's

TheFXSpot: Jackson Hole Soundbites Key For Risk Sentiment

By Vicki Schmelzer

NEW YORK, Aug 19 (MNI) - Federal Reserve Chairman Ben Bernanke
has some heavy lifting to do next week, when he addresses "central
bankers, policy experts and academics" at the Kansas City Fed's annual
symposium in Jackson Hole, Wyoming.

S&P Surprises, Gives U.S Farm Credit Sys Good Marks

WASHINGTON (MNI) - The following are excerpts from Standard &
Poor's analysis of the U.S. Farm Credit System, published late Friday:

Ratings Detail

Strengths: The Farm Credit System receives implicit support in its
ratings as a government-sponsored enterprise (GSE)Good asset-quality
metricsStrong risk-adjusted capitalization, especially at the district
levelAccessibility to favorably priced fundingWeaknesses:Lending limited
to cyclical agricultural sectorLimited revenue diversificationPotential
for adverse regulatory changes related to broader housing GSE

WEBINAR INVITATION: Policy Changes in Latin America; 4p Aug 30

WASHINGTON (MNI) - Market News International's latest in its
series of monthly Webinars examines policy changes in Latin
America.

WHEN: Tuesday, August 30, 2011 at 4:00 p.m. ET.

TOPIC: The major Latin America economies have been among the key
engines of global growth as more advanced economies continue to
languish. But their success is creating policy challenges unlike any
the countries have ever faced in modern times. Solid fundamentals and
foreign investors in search of yield have generated massive capital
flows, and brought with it currency appreciation and inflation

US Credit Default Swaps: Weakness Shows Amid Global Fears

By Steven Levine

NEW YORK, Aug 19 (MNI) Investment-grade credit spreads maintained
weakness Friday, as U.S. equities dipped into the red and market
participants continued to chatter about fears over European bank funding
concerns, as well as recent poor domestic economic data.

US MBA Text: Upgrades Mtg Origination Outlook to $1.1 Tln/'11

--Sees Greater Drop in Origination Volume Next Year

WASHINGTON (MNI) - The following is the Mortgage Bankers Assoc.
summary of its outlook for origination volume, published Friday:

The Mortgage Bankers Association's (MBA) Economic and Mortgage
Finance Forecasts released today project $1.1 trillion in residential
mortgage origination volume in 2011, roughly $100 billion more than
earlier forecasts, as low mortgage rates have brought in higher than
expected refinance volume, while purchase volume has been less than

US Debt Offering, Auction Calendar for Tsy and Agency Issues

August 19

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S. dollars

Auction/ Prev. Announce Pricing Settlement Maturity Auction Source Date Issue Date Date Date Size

Upcoming bills and coupon offerings:

UST 22-Aug-11 4-wk 23-Aug-11 25-Aug-11 --- 35.0 FNMA 22-Aug-11 3-mo 24-Aug-11 25-Aug-11 --- 1.0 FNMA 22-Aug-11 6-mo 24-Aug-11 25-Aug-11 --- 1.0

Argentina's Boom Econ Faces Warning Signs in Global Turmoil

By Charles Newbery

BUENOS AIRES (MNI) - Argentine President Cristina Fernandez de
Kirchner this week said she plans to deepen policies that have brought
her country robust economic growth and low indebtedness, even as the
world economy shudders.

"We're not going to shift even a centimeter from this virtuous road
of growth," she said in the days after securing 50% of the votes in a
national primary last Sunday, a sign that she will easily win
re-election at the Oct. 23 presidential election.

The strategy has its merits.