Weekly Market Update

HEADLINE NEWS WEEK ENDING 5/15/09

Overview
The sprouting “green shoots” may turn out to be closer in color to yellow—at least for now. Investor hope for an economic stabilization faded slightly as the retail sales and employment data disappointed this week. more...

US MARKETS
Treasury/Economics
US Treasury yields headed lower this week after a reprieve from new supply brought buyers back into the market. more...

Large-Cap Equities
The equity market fell sharply due to weak economic data and a plethora of secondary offerings by public companies. more...

Corporate Bonds
Investment-grade primary activity shot out of the gates this week with over $11.5 billion pricing on Monday alone. more...

Mortgage-Backed Securities
Mortgages enjoyed another week of easing credit conditions, robust demand, and declining volatility. more...

Municipal Bonds
The municipal bond market enjoyed another solid week as risk aversion continued to abate across credit markets. more...

High-Yield
The high yield market momentum of the prior eight weeks appears to be fading a bit. The Merrill Lynch High Yield Constrained Index is down 1.0% over the past week, after a stunning 20% rally from mid-March 2009 to early May. more...

INTERNATIONAL MARKETS
Western European Equities
Stocks in Western Europe lost ground over the past week. The stocks with the worst performance were basic resources (-9.7%) and real estate (-8.4%). more...

Eastern European Equities
The CECE index of equities traded in Central Europe (Czech Republic, Hungary, and Poland) lost -6.2% this week, while the Russian stock index RTS went down -0.2%. more...

Global Bonds and Currencies
Disappointment with the week’s global economic data triggered a return to risk aversion which benefited all major government bond markets in the past week. more...

Emerging-Market Bonds
Emerging markets sold off this week following weaker equity markets in the US. Dollar-pay debt spreads widened by 30 bps, taking a breather after several weeks of rally. more...

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