EFTA01462177.pdf

Loans - A Unique Asset Class Corporate Capital Senior Secured Loans Structure ■ The most senior debt obligation in the capital structure of non-investment grade companies, explicitly secured by claims on the company's assets to provide superior rights in the event of default Senior Secured Loans / • Interest is paid prior to bond coupons and stock dividends Revolving Credit Facility ■ Covenants can preserve cash to protect against credit deterioration ■ Generally shorter maturity than bonds ■ Benefit from -Floating rates Senior Unsecured Bonds - LIBOR floors • Over the long term, historical recovery rates have been 70% for senior secured loans Trailing 12-Month Recovery Rate 100 US Senior Seethed Loans SUS Senor Unsecured Bonds —tourr—All Subordinated Bonds 90 so 70 oo 50 40 Equity 30 20 10 0 3 • / • V • V V Y 14 VI 41. I 04 4 4 '4 12/ v1 2/ 4 i g 4 i i ic i S Deutsche Bank Source: Moaly's Monthly Default Roped. Jan 2014 8 Corporate Banking & Securities CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124594 CONFIDENTIAL SDNY_GM_00270778 EFTA01462177