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 $28 billion range, Morgan Keegan is among the nation’s leading underwriters of new issue agencies. Consider these numbers*:

2^nd in underwriting by number of issues in 2008 for all GSE names
14^th in the world totaling $25 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 $1.8 billion, 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)	Fee (%)	Issues
League Table for All Agency Underwriting for the Year Ending 2007, rated by number of deals*
1	Morgan Keegan & Co	3.1	17,499.62	0.078	781
2	Vining Sparks	1.7	9,770.92	0.124	621
3	FTN Financial	4.2	23,418.60	0.077	580
4	UBS	13.1	73,713.80	0.050	438
5	JP Morgan	8.9	49,741.35	0.051	255
6	Barclays Capital	12.5	70,196.57	0.047	251
7	Deutsche Bank AG	11	61,614.85	0.068	212
8	RBS	7	39,072.47	0.042	212
9	Bank of America	7	39,273.04	0.035	209
10	Piper Jaffray & Co	0.6	3,151.87	0.151	186
11	Jefferies & Co	0.7	4,144.95	0.118	181
12	Merrill Lynch & Co	6.3	35,439.23	0.040	179
13	Wells Fargo Bank NA	0.7	4,092.30	0.648	166
14	Robert W. Baird & Co.	0.4	2,462.70	0.133	151
15	Citi	1.8	10,118.10	0.121	149
16	Credit Suisse	6.9	39,015.18	0.016	129
17	BNP Parabis Group	1.8	10,368.75	0.078	118
18	Morgan Stanley	1.4	7,647.95	0.133	98
19	Goldman Sachs & Co.	3.3	18,435.80	0.091	93
20	HSBC	2.3	12,709.55	0.052	80
*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