Week of March 18, 2012 thru March 24, 2012

US$ CREDIT SUPPLY PIPELINE - March 15, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 3/15 750 #BB&T Corp (A2/A-) 5 T+110 BAR/BBT/DB/GS 3/15 300 #BB&T Corp (A2/A-) 10 T+175 BAR/BBT/DB/GS Sub debt, will not grow 3/15 500 #Goodman Funding Pty (Baa2/BBB 10 T+380 BAR/JPM/RBS 144A w/o Reg Rights 3/15 750 *KfW (Aaa/AAA) FRN 2014 3mL-1 BAML/BNP Reopen 1/2014 3/15 750 *Transportadora de Gas 10 5.70% C/CS Internacional (Baa3/BB) 144A Reg S W/o Reg Rights; 101 CoC Put, NC5 3/15 TBD Bank of Nova Scotia (Aaa/AAA) 3 BAML/BAR/DB/ 144A Reg S, covered bonds S

US$ CREDIT SUPPLY PIPELINE - March 15, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 3/15 750 #BB&T Corp (A2/A-) 5 T+110 BAR/BBT/DB/GS 3/15 300 #BB&T Corp (A2/A-) 10 T+175 BAR/BBT/DB/GS Sub debt, will not grow 3/15 300 #Goodman Funding Pty (Baa2/BBB 10 T+380 BAR/JPM/RBS 144A w/o Reg Rights 3/15 750 *KfW (Aaa/AAA) FRN 2014 3mL-1 BAML/BNP Reopen 1/2014 3/15 750 *Transportadora de Gas 10 5.70% C/CS Internacional (Baa3/BB) 144A Reg S W/o Reg Rights; 101 CoC Put, NC5 3/15 TBD Bank of Nova Scotia (Aaa/AAA) 3 BAML/BAR/DB/ 144A Reg S, covered bonds S

US$ CREDIT SUPPLY PIPELINE - March 15, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 3/15 750 #BB&T Corp (A2/A-) 5 T+110 BAR/BBT/DB/GS 3/15 300 #BB&T Corp (A2/A-) 10 T+175 BAR/BBT/DB/GS Sub debt, will not grow 3/15 300 #Goodman Funding Pty (Baa2/BBB 10 T+380 BAR/JPM/RBS 144A w/o Reg Rights 3/15 750 *KfW (Aaa/AAA) FRN 2014 3mL-1 BAML/BNP Reopen 1/2014 3/15 750 *Transportadora de Gas 10 5.70% C/CS Internacional (Baa3/BB) 144A Reg S W/o Reg Rights; 101 CoC Put, NC5 3/15 TBD Bank of Nova Scotia (Aaa/AAA) 3 BAML/BAR/DB/ 144A Reg S, covered bonds S

Cleveland Fed:Home Overval Causes More Foreclosures,Fewer Mods


(MNI) - Mortgage lenders are "systematically" overvaluing homes on which they are foreclosing, swelling inventories of "real-estate owned" or REO properties, a pair of Cleveland Federal Reserve Bank economists said in research released Thursday.

If foreclosed properties were valued at lower levels, there would be more incentive for lenders to reach loan modification agreements with their borrowers, and there would be less of an overhang of unsold homes to depress the housing market, Thomas Fitzpatrick and Stephan Whitaker argue in the Cleveland Fed's latest "Economic Commentary."

"Swelling REO inventories" are "costing lenders money and contributing to neighborhood blight," they write.

US Swaptions:OTC/Listed Vols Retrace Lower As FI Sale Stalls


CHICAGO, March 15 (MNI) - After a near steady open Thursday, over-the-counter swaption volatility retraced lower as the heavy curve steepening pressure in long end rates faltered.

Several US Senate Republicans Offer Sweeping Medicare Changes


--Four Conservative Republicans Propose Big Changes To Key Program
--Senators Say Plan Would Generate $1T in Ten Year Savings
--House Budget Committee Chairman To Offer His Budget Next Week

WASHINGTON (MNI) - Four conservative Senate Republicans offered a sweeping Medicare reform proposal Thursday that would substantially overhaul the program, gradually increasing its eligibility age and requiring wealthier seniors to pay more of the costs of the program.

According to the GOP senators, the package would generate about $1 trillion in 10 year savings.

Credit Default Swaps: IG17 At Series Tight, USA CDS 2Y Narrow


CHICAGO, March 15 (MNI) - The benchmark index on U.S. investment grade Credit Default Swap levels moved to a series tight Thursday amid a light volume continuation of the risk-on trade, observers said.

The IG17 has narrowed by 1.0 basis point to 89.50-89.75 bps midmarket. This was off the intraday low and new all time series tight of 89.25 bps. Credit performed in line with stocks as the Dow Jones Industrials were last up 44 points at 13238.

Insurance against default on the USA was flat at 33 bps, its best level in 2-years. This compares to the high of 65 bps on July 28, 2011 and the low of 19 bps on Sept. 29, 2009.

Credit Default Swaps: IG17 At Series Tight, USA CDS 2Y Narrow


CHICAGO, March 15 (MNI) - The benchmark index on U.S. investment grade Credit Default Swap levels moved to a series tight Thursday amid a light volume continuation of the risk-on trade, observers said.

US$ CREDIT SUPPLY PIPELINE - March 15, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 3/15 750 *KfW (Aaa/AAA) FRN 2014 3mL-1 BAML/BNP Reopen 1/2014 3/15 750 *Transportadora de Gas 10 5.70% C/CS Internacional (Baa3/BB) 144A Reg S W/o Reg Rights; 101 CoC Put, NC5 3/15 TBD Bank of Nova Scotia (Aaa/AAA) 3 BAML/BAR/DB/ 144A Reg S, covered bonds SCO/UBS Fully backed by prime Canadian CMHC-insured res mtgs. 3/15 TBD Bank of Nova Scotia (Aaa/AAA) 5 BAML/BAR/DB/ 144A Reg S, covered bonds SCO/UBS Fully backed by prime Canadian

Canadian Household Debt Increased Q4 2011; Assets Up Even More


--Debt-Income Ratio Edges Down

OTTAWA (MNI) - Canadian household debt levels have raised concern at the Bank of Canada and in the government, but even as they increased further in the fourth quarter, assets rose at a higher rate, easing the debt-to-income ratio a bit, and private analysts show little concern for now.

Household debt increased by C$20 billion in the fourth quarter last year but their asset values by C$80 billion, according the National Balance Sheet Accounts Statistics Canada released Thursday.

The key marker often cited, the seasonally adjusted credit market debt-to-income ratio, subsided slightly to 150.6% from 152% in the third quarter.