Credit Market Report May 9, 2008 
U.S. Treasury prices rose and yields fell across all maturities on Thursday as investors moved money towards the safety of government debt. In the battle between risk and inflation, risk won on Thursday as investors were more concerned with finding a safe haven than they were about higher prices eating into yields. Inflation is certainly not to be forgotten however, as oil prices once again hit a new record level of $124 per barrel. The record high price for oil and other commodities is leading many investors to believe that consumers will be, or already have been, forced to curtail spending on discretionary items, a move that would likely curb economic growth. The April sales reports released by the nation’s major retailers affirmed these beliefs as they reported that Americans are spending more on necessities than on apparel and other discretionary goods. The Labor Department said the number of newly laid-off workers requesting unemployment benefits fell by 18,000 last week to 365,000, a larger decline than expected. The news had little impact on Treasury’s however.

Treasury Rates are as of late-afternoon May 8, 2008 as reported in the Wall Street Journal.

Fixed Rate Indices 
Maturity Coupon Yield
2-year..........04/10.........2 1/8%.........2.25%
5-year..........04/13.........3 1/8%.........3.01%
10-year........05/18.........3 4/8%.........3.80%
30-year........05/38.........4 3/8%.........4.56% 
 
 Floating Rate Indices 
30-day LIBOR.................................2.59000%
90-day LIBOR.................................2.71563%
Six-month LIBOR............................2.82000%
1 Year LIBOR..................................2.94375%

Rates in the London market based on quotations at 16 major banks for May 8, 2008.

Prime..............................5.00%
Last Effective Change: 4.30.08

Spread Markets 
2-year SWAP Spreads................................79.9 bps
2-year SWAP Rate......................................2.979
5-year SWAP Spreads................................78.5 bps
5-year SWAP Rate......................................3.712
10-year SWAP Spreads................................58.8 bps
10-year SWAP Rate......................................4.326

As reported by RBS Greenwich Capital 5.10.2008 8:48 AM EST

Researched by:
Christopher S. Carroll
Managing Director, Capital Markets
Christopher K. Ferguson
Vice President, Capital Markets 
Sean K. Simons
Analyst, Capital Markets
Brandon A. Gorge
Analyst, Capital Markets