| | High Yield Report: The high yield municipal market outperformed high grades in May 2009 and closed the month with a total return of 6.402% as measured by the Standard and Poors /Investortools, High Yield index vs. a 1.248% return on the Standard and Poors/Investertools Investment Grade Index. In the health care sector, CCRC's tightened by 50 to 70 basis points on improved bids. In the education sector, non-rated private and charter schools were up anywhere from 50 to 70 basis points on the long end with improved bids. One example of this improvement was the MD IDA {Our Lady of Good Counsel} 6.00% due in 2035 which were priced to yield an 8.44% up about 5.25 points for the month. In the land secured sector, strong California projects tightened by 20 basis points, on the long-end with some names being bid through a 7.00% while weaker names continued to trade behind a 9%. Florida land secured names, from twenty years and out traded anywhere from 7.30% to 8.00%. During the month there were approximately 35 debt service reserve fund draws and these projects were adjusted down to around 11%. Secured and unsecured airline issues closed the month up anywhere from 9 to 13 points on improved bids and size trades. In addition, prepaid gas issues for Citibank, J P Morgan, Merrill Lynch and Goldman were up on the long-end, anywhere from 6 to 10 points depending on structure. Finally, tobacco issues were up by 7 to 10 points, out long depending on structure with Michigan Tobacco (6 7/8% due in 2042) closing the month at around $81.18 up about 11 points for the month. | | | |