Week of December 11, 2011 thru December 17, 2011

BOC Gov Carney: World Risks Prolonged Recession


--Global Debt Deleveraging Too Fast Is Dangerous
--Advanced Economies In For Long Deleveraging Period

OTTAWA (MNI) - Bank of Canada Governor Mark Carney today saw the global economy risking a prolonged period of recession, what he called "deficient demand," as a result of countries reducing their debt burdens.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 600 #Banco de Bogota (Baa2/BBB-) 5 5.25% C/HSBC/JPM 144A Reg S Chatter that order book very oversubscribed. 12/12 TBD CAT (A2/A) FRN MTN 2 BAML/JPM Talk 3mL+30 12/12 TBD CAT (A2/A) MTN 3 BAML/JPM Talk +87.5 +/-2.5 Size and split TBD

U.S.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 600 #Banco de Bogota (Baa2/BBB-) 5 5.25% C/HSBC/JPM 144A Reg S Chatter that order book very oversubscribed. 12/12 TBD CAT (A2/A) FRN MTN 2 BAML/JPM Talk 3mL+30 12/12 TBD CAT (A2/A) MTN 3 BAML/JPM Talk +87.5 +/-2.5 Size and split TBD

U.S.

BOC Gov Carney: Europe Debt Crisis Only "Barely Contained"


--World Econ Outlook Weakening, Fin Mkt Volatility Ongoing
--Bank Canada To Maintain 1.0% Policy Interest Rate As Result

OTTAWA (MNI) - Bank of Canada Governor Mark Carney today saw Europe's debt crisis as being only "barely contained," suggesting continuing weak world economic growth and turmoil in financial markets.

Carney observed that "acute strains persist" in Europe and that "at this point, the crisis appears barely contained," in a speech before the Metropolitan Montreal Board of Trade.

UK: Highlights of Market News Economic Forecasts Surveys


London, Dec 12 (MNI) - The following are highlights of forecasts for upcoming U.K. economic indicators and events.

All times in GMT/ET format.

Analysis: FOMC Apt To Stay On Hold At Year-End Meeting -1


(MNI) - Federal Reserve policymakers convene their final Federal Open Market Committee meeting of the year Tuesday amid conflicting domestic economic signals, external shocks and internal divisions.

The December FOMC meeting is seldom a time for major policy moves, and the upcoming one is likely to be no exception, although a change in communication strategy is possible.

Even if the FOMC does nothing, however, a very accommodative monetary policy -- at least by most standards -- will remain in place.

Fed Chairman Ben Bernanke and his colleagues are sure to keep the federal funds rate target in the zero to 25 basis point range, where it has been for three years now.

Analysis: FOMC Apt To Stay On Hold At Year-End Meeting -2


Overhanging the outlook, of course, are dark clouds from Europe, which remains on the brink despite the ballyhooed efforts of EU leaders to salvage the situation. Looming not far behind are concerns about the United States' own unresolved fiscal mess. And there are fears that China may experience something less than a soft landing, in which case U.S. exports could take a serious hit.

But none of these negatives necessitate making an already easy U.S. monetary policy even easier at this particular juncture.

The FOMC majority, including the reconstituted voting ranks of 2012, will probably want to see some shortfall from the November economic projections, including some further disinflation.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 600 #Banco de Bogota (Baa2/BBB-) 5 5.25% C/HSBC/JPM 144A Reg S Chatter that order book very oversubscribed. 12/12 TBD CAT (A2/A) FRN MTN 2 BAML/JPM Talk 3mL+30 12/12 TBD CAT (A2/A) MTN 3 BAML/JPM Talk +87.5 +/-2.5 Size and split TBD

U.S.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 TBD CAT (A2/A) FRN MTN 2 BAML/JPM Talk 3mL+30 12/12 TBD CAT (A2/A) MTN 3 BAML/JPM Talk +87.5 +/-2.5 Size and split TBD 12/12 600 Banco de Bogota (Baa2/BBB-) 5 C/HSBC/JPM 144A Reg S, talk 5.25% area Chatter that order book very oversubscribed.

U.S.

US Corporate Bond Chatter: Risk-Off Tone Amid EZ Rating Risk


NEW YORK, Dec 12 (MNI) - Low investment-grade corporate bond supply landed Monday on the new debt offerings calendar, amid a risk-off mood in the credit market as disappointment lingered over Friday's EU heads of state summit.

Peoria, Illinois-based Caterpillar Financial was among the issuers Monday that braved the market volatility to borrow dollar-denominated funds.

The company will issue $300 million of 3-year notes in an offering led by joint book-running managers Bank of America Merrill Lynch and J.P. Morgan.

The deal is rated 'A2' by Moody's Investors Service and 'A' by Standard and Poor's.