EFTA01377065.pdf

CIO Insights August 2016 Fixed Income 12 Negative yields After the June 24 Brexit vote, more bond yields turned negative • Negative • Positive 1yr 2 3 4 5 6 7 8 9 10 30 Switzerland MI= Germany Japan Sweden Netherlands France Spain n NS slinia F= 4.110 =NM at Italy =NM Ma pie swum United Kingdom Nom United States Past performance is not indicative of future returns difficulties meeting liabilities may ECB and, perhaps, the Bank of be some of the more obvious Japan (which has recently refrained consequences. from major new policy initiatives), is likely to make assets in higher The lesson? As monetary policy yielding markets, such as the U.S.. continues to keep interest rates at more attractive. Policy makers extraordinary lows, it effectively side- would surely be well-advised to fret lines "normal" market mechanisms. about market distortions. Investors, For now, the usual suspects should meanwhile, might as well continue continue to benefit. These include to enjoy the ride. periphery bonds and European corporates. More stimulus by the Sources' Bloomberg Finance l P, Deutsche Bank Wealth Management. Data as of August 11, 2016. Past performance is not indicative of future returns. Readers should refer to the explanatory notes at the end of this document. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0073605 CONFIDENTIAL SONY GM_00219789 EFTA01377065