EFTA01462197.pdf

Executive Summary ■ Deutsche Bank Securities Inc ("DB") is pleased to provide an overview of the Collateralized Loan Obligation ("CLO") market opportunity ■ Bank loans strategies have grown in popularity due to the unique features of the loan asset class (ie: senior secured status, attractive cash coupons and floating rate) ■ At present, these assets yield roughly 4.6%, with inherent downside protection arising from senior security. As such, loans offer an attractive risk-adjusted return ■ Some investors access loans on an unlevered basis through products such as mutual funds ■ Other investors recognize that the yield and stability of bank loans offer a prime opportunity to apply leverage to generate higher absolute returns ■ Experience shows that term, non-recourse, non-mark-to-market financing is the most secure way to leverage these assets ■ The most established method of attaining this type of leverage is via a structured financing or CLO structure, which has been employed for securitizing loans since the early 1990s ■ CLOs have performed well through the downturn delivering at least double digit returns in most cases(1)(2) ■ CLOs have gone from a niche part of the market to an accepted asset class for investors seeking risk adjusted returns and yield with an investment thesis which fits the current economic market and environment. Deutsche Bank (1) Past performance is not indicative of future results. DB is not making any representation as to the profitabilly of any financial instrument or economic measure. Assays:Mons. 5 opinions and estimates expressed constitute our judgment as of the date of this material and are subject to change without notice. An investment in this type of transaction Corporate Banking & Securities may result in the loss of your entire investment. (2) Based on a subset of CLOs arranged by DB CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124624 CONFIDENTIAL SDNY_GM_00270808 EFTA01462197