Government

At Morgan Keegan, A Trade Isn’t an Electronic Transaction — It’s A Relationship.

Trading Personnel … On Target

A good trade isn’t made by a company. It’s made by a team of individuals, experienced in what they do and well-versed in the customer’s needs.

With about one trader to every two salespeople, and an average of more than 15 years of experience per trader, Morgan Keegan prides itself on closing a deal better than anyone else. And it starts at the top. Bill Mueller, Head of the Government Desk, is joined by some of the top professionals in the market, including six line traders and three dealer desk traders.

In addition, we have two dedicated traders who head up the structured product area where we underwrite new issue agencies and provide advice in swap and derivative markets. With Morgan Keegan, you find the experience and the attitude intended to provide the best execution—every time.

Inventory Positions … On the Rise

The Government Desk positions up to $500 million in new issue and secondary agencies along with money market instruments. The desk works daily on underwriting new issues and specializes in underwriting one-time call structures. And in keeping with our customer focus, we are committed to increasing positions to whatever level is needed to satisfy investor demand.

Morgan Keegan’s Government Desk is committed to actively making a secondary market in all government-sponsored agencies, especially those issues we underwrite. Providing you with the options for execution that meet your individual portfolio needs.

Underwriting Capabilities … Atop the Charts

Making the grade in underwritings is an important function of the Government Desk. With annual volume of our agency underwritings running in the $20 billion range, Morgan Keegan is among the nation’s leading underwriters of new issue agencies. Consider these numbers*:

1st in underwriting by number of issues in 2009 for FHLB
3rd in underwriting by number of issues in 2009 for all GSE names.
16^th in the world in underwriting, totaling $20 billion across all GSE names

See our latest ranking below.

*Bloomberg, L.P.

Trading Philosophy … In Focus

Our trading philosophy follows our company philosophy — customer driven.

We buy and position bonds in support of our clients. And unlike most firms on Wall Street, we’re not restricted to just our own products. We view and select securities from all over. With total fixed income inventory lines in excess of $800 million, we align our buying with the specific needs of our clients — whether seeking relative value in new structured issues or tapping undiscovered value in secondary markets.

It’s not just how we think. It’s how we do business.

Agency Underwriting … Ahead of the Field

Rank	Manager	Mkt Share %	Amount Total ($MM)	Issues
League Table for All Agency Underwriting for the Year Ending 2009, rated by number of deals*
1	FTN Financial	3.4	42,687.18	984
2	UBS	9.4	119,851.70	909
3	Morgan Keegan & Co.	1.6	20, 176.28	830
4	Incapital LLC	1.6	20,218.12	729
5	Vining Sparks	1.1	13,318.18	726
6	JP Morgan	13	164,746.61	666
7	Jefferies & Co.	2.2	28,398.97	541
8	Deutsche Bank AG	7.6	96,760.28	449
9	Bank of America Merrill Lynch	9.8	124,909.60	444
10	Citi	6.8	86,038.26	442
11	Barclays Capital	12.4	158,091.79	432
12	RBC Capital Markets	2.2	28,330.70	395
13	Wells Fargo Bank & Co.	0.9	11,492.50	348
14	Credit Suisse	4.9	61,744.20	319
15	Morgan Stanley	5.4	68,184.86	314
16	Goldman Sachs & Co.	6.1	78,016.02	286
17	RBS	3.3	41,315.20	278
18	Stifel Nicolaus & Co. Inc.	0.4	4,953.50	193
19	BNP Paribas Group	1.9	23,718.33	166
20	Robert W. Baird & Co.	0.3	4,401.07	163
*Source: Bloomberg, L.P.—Total $ Amount—Number of Deals—Includes all underwritten agencies. Size divided equally among managers for joint-led issues. Gross proceeds used.

Debenture Selling Groups … Member

Federal National Mortgage Association
Federal Home Loan Mortgage Association
Federal Home Loan Bank Federal Farm Credit Bank