Fixed Income Commentary Available for Download

Pershing has released a fixed income commentary as of 1/14/11. Please click on the following link to access a full copy of this commentary.

https://www.pershing.com/assets/newsletters/fixed_income_commentary.html

A summary is below:

Government debt concerns took center stage this week, as several periphery nations tried to sell bonds for the first time this year. Portugal was expected to be the biggest concern, and saw its bond and CDS spreads widen in the days leading up to the auction.

Government debt concerns took center stage this week, as several periphery nations tried to sell bonds for the first time this year. Portugal was expected to be the biggest concern, and saw its bond and CDS spreads widen in the days leading up to the auction. Ultimately, it sold $1.6 billion in euro denominated debt at better than expected rates, setting up successful sales by Spain and Italy. Closer to home, the municipal debt market did not see the same level of investor interest and experienced one of its worst weeks since the financial crisis. We will cover the municipal market in our weekly call, and hope that you can join us. Dial-in information can be found in the attached report.

Most bond sectors were largely unchanged on the week, but traded within wide ranges throughout the week. As far as we can tell, the risk trade remains intact, and monies continue to flow into corporate, high yield and equity assets, while the luster of a safe municipal market is being tarnished. Economic releases were mixed this week, and there are limited economic numbers next week. Fourth quarter earnings started this week and so far, so good. Next week will be the first big week of company releases, including Citigroup, Bank of America, Apple and Goldman Sachs.