Weekly Market Update (4/3/09)‏

Payden & Rygel (paydenrygel@payden-rygel.com)
HEADLINE NEWS WEEK ENDING 4/3/09

Overview
The US labor market continues to deteriorate at an alarming rate. According to the latest figures from the Bureau of Labor Statistics, the US economy shed 663,000 jobs in March and the unemployment rate rose to a 25-year high of 8.5% during the month. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

US MARKETS
Treasury/Economics
US Treasuries traded within a very narrow range this week showing a tendency towards higher yields. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Large-Cap Equities
The stock market rallied for the fourth consecutive week due to positive news from the Group of 20 (G-20) meeting in London and the relaxing of mark-to-market accounting rules. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Corporate Bonds
Investment grade primary issuance slowed down considerably this week as economic data and the automakers ruled the headlines. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Mortgage-Backed Securities
Agency mortgages outperformed Treasuries as yields drifted higher and the focus shifted from agency products to the credit sensitive asset classes. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Municipal Bonds
AAA-rated bond yields were 10 to 12 bps lower in the 2-5 year maturity range over the last week. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

High-Yield
The high yield market finished the month of March in solid form, despite mixed economic data towards month end and continuing uncertainty about the eventual fate of two high yield companies: General Motors and Chrysler Automotive. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

INTERNATIONAL MARKETS
Western European Equities
Stocks in Western Europe gained ground over the past week. The stocks with the best performance were construction and materials (+11.8%) and travel and leisure (+11.8%). more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Eastern European Equities
The CECE index of equities traded in Central Europe (Czech Republic, Hungary, and Poland) gained +10.0% this week, while the Russian stock index RTS went up by +3.4%. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Global Bonds and Currencies
Major sovereign bond markets declined over the past week, mainly on the view that the G-20’s stimulus package would prove sufficient to stabilize the global economy. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

Emerging-Market Bonds
Emerging market dollar-pay debt spreads tightened this week. The constructive outcome of the G-20 summit and a US $1 trillion commitment to IMF reserves resulted in a continuation of the positive tone in risk markets seen over the past few weeks. more...http://payden.com/library/weeklyMarketUpdateE.aspx#highyield

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