EFTA01458281.pdf

I September 2015 Corporate Credit: Back to school - The edge of normality [Figure 40: GBP Benchmark Spreads Percentiles by Rating and Maturity Buckets (All Corporate) >30 e ,e4eirtar,oThe e rtirice, Sear e 4rf 1' • Pal' erf4recerceir e-rPPPPrPC,r effCFeet,4e,r re te.felete etreeetted,e et,e4r 4e fir tr., 4' (CC, el" orrereefene etteeetireee reef areeiree, everseefecoefie etellefleede ovc• over Bar* !Figure 41: USD Benchmark Spreads Percentiles by Rating and Maturity Buckets (All Non-Financial) ISA INCA Gaol AP fro l n... Yr aft °tontine,'" enteentee nintonn ettereetne filetertaele." oteleseseitsfr teeseeeee rt netnenn Gas wi teeteeteete retersenee reeetreeete 49, eireeente etreeeeseet a a a a a eretereeen eteseinese etreiereete e este tee el 4.eireetene Save. atatscha Sant So our analysis suggests that there is potential relative value in the long-end of the IG credit market, particularly as we move down the rating spectrum and particularly in the USD market. Furthermore we would argue that current long- dated spreads are at the wide end of normal (non-crisis) times. So given that Page 22 Deutsche Bank AG/London CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0118123 CONFIDENTIAL SDNY_GM_00264307 EFTA01458281