EFTA01385337.pdf

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 [Figure 27: Total HY Energy deal count 1 140 292 :16 207 ISO 101 200 la 142 66 Z to 100 el 50 20 0 FY 14 FY 15 FY 16 FY I7.YTD FY M FY 12 FY 16 FY 17.170 *sea Mass lawnLaw o601124 NC446 sTenn Lan Smoot Oweedweint Sant dupla,* ent [Figure 28: HY Energy issuance by sub-sector [Figure 29: HY Energy 2017 issuance by quarter as ro 1111 n ]0 2 S m so ZO IS 10 10 0 I EV 1 II II &races Ream I /SEISM. OI17 WI7 Wag 0417.010 savor p& STarm loan • See* Notes • Tarn took Sean C— an Sans C— an Page 62 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086621 CONFIDENTIAL SDNY_GM_00232805 EFTA01385337