EFTA01385337

January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite HY Energy debt market activity in FY 17 The HY Energy bond issuance market activity gained back momentum this year after a semi-hiatus over the last two years. The total issuance in the bond and TL markets have already crossed S100BN by mid-December, comparable to S116BN levels seen in FY 14 and well-above $53BN in FY 15 and $70BN in FY 16. However, in terms of deal count, the 2017 YTD count is 142 which is well below FY 14 levels of >200. The revival has been led by E&Ps ($26BN, 25% of total) and midstream ($28EIN, 28%) with both sub-sectors recording a -1000/0 growth YoY. The quarterly cadence of issuance has therefore tracked the oil movement - i.e. strong in Q1 and Q4. Single-B and CCC issues accounted for half of the bond issuances in FY 17 YTD, up from 36% in the previous year. [Figure 26 Total HY Energy debt issuance 140 ISO la Z 66 to 20 :16 101 FY 14 FY 15 FY 16 *sea Mass lawnLaw FY I7.YTD [Figure 27: Total HY Energy deal count 292 200 100 50 0 207 1 FY M Smoot Oweedweint Sant dupla,* ent [Figure 28: HY Energy issuance by sub-sector as ro n ]0 2 S I 1 II I m so ZO IS 10 II 0 /SEISM. EV &races Ream savor p& STarm loan 10 142 el FY 12 FY 16 FY 17.170 o601124 NC446 sTenn Lan [Figure 29: HY Energy 2017 issuance by quarter 1111 OI17 WI7 Wag 0417.010 Sean C— an Sans C— an • See* Notes • Tarn took Page 62 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086621 CONFIDENTIAL SDNY_GM_00232805 EFTA01385337