BA/ML Credit Market Strategist........>

US CORPORATES: BA/ML Credit Market Strategist report said "the environment of a

lack of foreign inflation and moderate US inflation continues to be very bullish

for US credit spreads."

- "That supports continued large foreign inflows into US credit," they said.

"But it would be more bullish to see US inflation increase from here than

further weakness."

- They explained that "continued weak US inflation data is concerning, as

downward pressure on US interest rates may eventually become counterproductive

for credit spreads as demand weakens. However, the dollar's reaction" to

Friday's "weak 0.1% MoM print on September core CPI was more encouraging as the

greenback recovered the initial selloff on the back of strong consumer

confidence data (U. of Mich.). This is because we think the recent

post-the-September-FOMC meeting floor on the dollar that has weakened this year,

is encouraging more foreign buying of US corporate bonds on a currency unhedged

basis."