The new issue calendar topped expectations and priced $38Bln last week bringing monthly total to $118Bln just shy of expectations of $125Bln. Spreads were mixed from 5Bps wider to 5Bps tighter on solid activity and secondary volume saw $2.8Bln of net client selling.

This week’s estimates are calling for $25Bln of new supply and we expect that to be front loaded in front of Wednesdays Fed decision. The big question is will they go with a 25 of 50 basis point rate cut. The back drop for issuers remains strong with the avg high grade all in yield now at 4.68% which is the lowest level in 2 years and now with Fed rate cuts in play they should be heading lower! Great job by the Amerivet Securities team last week as we were a Co-Manager on $1.1Bln 15NC10 tranche for Citigroup.