Houston, Texas, May 1, 2008 - After five straight down months equities rebounded with their best month in 5 years. Liquidity was down some, the bonds were up by slightly more, but both changes paled in comparison to the growth of equities. The investment grade U.S. capital markets grew a robust 3.17% in April to $32.9 trillion.

The nearly $1 trillion one month growth in equities, up 6.40% to $16.0 trillion, is the largest percentage gain since April of 2003. The increase brought equities to 48.52% of the investment grade U.S. capital markets. With the exception of Consumer Goods, which was down slightly, all sectors saw increases of 4% or more. Of the growth, the Mining & Construction sector accounted for nearly 25% and the Manufacturing & Wholesale Trade sector contributed over 20%.

Liquidity instruments declined for the first time in nine months, down 1.94% to $7.2 trillion and now account for 22.00% of the investment grade U.S. capital markets. This was largely due to activity of short term federal agency bonds and Treasury bills. The market for short term federal agency bonds decreased by almost 10% with nearly all of the decrease due to bonds that were called or matured in April. The market for Treasury bills dropped by 6.5% to back below $1 trillion despite the Federal Reserve Board further decreasing its holdings of Treasury bills. The Fed now holds less than 10% of the outstanding Treasury bills. From 2003 to end of 2007, the Fed typically held 25% to 30% of Treasury bills.

The story with the long term investment grade bond markets was quite different with an increase in April of 2.02% to $9.7 trillion. Again, federal agency bonds were the big movers. The market for long term federal agency bonds increased by over 10% as new debt was issued to cover the called securities in the short term sector. Bonds now account for 29.48% of the investment grade U.S. capital markets. A year ago the $32.2 trillion investment grade U.S. capital markets had equity, liquidity, and bond market proportions of 54.70%, 17.86%, and 27.44% respectively.

Dorchester's flagship index, CPMKTS^sm The Capital Markets Index, is carried on The American Stock Exchange under the symbol CPMKTS, with data updates every 15 seconds. The Amex also publishes component indexes CPMKTE^sm, CPMKTB^sm and CPMKTL^sm, tracking the equity, bond and liquidity markets.

About Dorchester Capital Management LLC.
Dorchester Capital Management LLC is a Houston-based company principally focused on designing financial products for the professional investment community. Dorchester’s unique approach to processing, organizing and standardizing capital markets data from the broadest variety of sources gives it a superior ability to help clients with the fundamental risk analysis questions of asset allocation and benchmarking. For additional information, please visit the company's Web site at www.cpmkts.com.

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