REUTERS/George Krieger DEBT CAPITAL MARKETS REVIEW MANAGING UNDERWRITERS Fu ll Y ear 2018 Full Year 2018 | Debt Capital Markets | Managing Underwriters Debt Capital Markets Review Table of Contents Global Debt International Debt Asia Debt Global Deals Intelligence 1 EMEA Deals Intelligence 10 Asia Deals Intelligence 15 Global Debt, Equity & Equity Related (A1) 1 All International Bonds (J1) 10 Asian G3 Currency Bonds (ex-Japan, ex-Australia) (AR2) 15 Global Debt and Syndicated Loans (DL1) 1 All International Securitizations (J10c) 10 All Asian Currencies (ex-Japan, ex-Australia) (AS1) 15 Global Scorecard 2 All Bonds in Euros (N1) 10 Dim Sum Bonds (AS24a) 15 Leading Underwriters for Full Year 2018 2 All Global Green Bonds (GR01) 11 All Asian Currencies (ex-Japan, ex-Australia, ex-China) (AS1a) 15 Global Debt (B1) 2 All International Green Bonds (JG1) 11 Australian Debt Global Investment Grade Corporate Debt (B7) 3 High Yield Australia Deals Intelligence 16 Global Debt and Syndicated Loans Islamic Finance (DL2) 3 Global High Yield Deals Intelligence 12 All Australian Debt (ex self-funded)self-funded) (AJ3a) 16 Global Mortgage-Backed Securities (B10) 3 Global High Yield Debt (B4) 12 Australian Dollar Non-Securitized Bonds (ex self-funded)(AJ6) 16 Global High Yield Debt - US Dollar Denominated (B5) 12 Global Asset-Backed Securities (B11) & (B13) 3 All Australian International Bonds (AJ7) 16 Global High Yield Debt - Non-US Dollar Denominated (B6) 12 Banking Composite of Top Global Debt Bookrunners 4 Japan Debt Emerging Market Debt Global Debt Rankings - Last Ten Years 5 Japan Deals Intelligence 17 All International Emerging Market Bonds (L1) 13 US Debt All Bonds in Yen (AP5) 17 EMEA Emerging Market Bonds (L2) 13 US Debt (F1) 6 Samurai Bonds (AP1) 17 Latin America Emerging Market Bonds (L3) 13 US High Yield Corporate Debt (F8) 6 Japanese Securitizations (AP2) 17 Asia-Pacific Emerging Market Bonds (L4) 13 US Investment Grade Corporate Debt (F9) 6 Japanese Corporate Debt (AP3) 18 Middle East Emerging Market Bonds (L5) 13 All Federal Credit Agency Debt (H1) 6 Bonds Targeted in Japan (AP4) 18 Emerging Market Debt - Latin America US Asset-Backed Securities (F14) 7 Criteria Summary All Brazilian Debt (BR1) 14 US Mortgage-Backed Securities (F11) 7 Debt Capital Markets Criteria Summary 19 Brazilian Domestic Debt (BR2) 14 US Securitizations ex.CMBS, Agency CMO, CDO & Self-Funded(F20a) 7 Global Debt by Mexican Issuers (MX1) 14 Banking Composite of Top US Debt Bookrunners 8 Global Debt in Mexican Pesos (MX2) 14 Thomson Reuters Solutions for the Deal Making IFR Markets Supplement 9 Domestic Mexican Debt (MX3) 14 Community 20 https://www.thomsonone.com Full Year 2018 | Debt Capital Markets | Managing Underwriters DEBT CAPITAL MARKETS REVIEW Global DCM Activity Falls 8% l US Investment Grade Debt Declines for First Time since 2008 l High Yield Corporate Down 37% l DCM Fees Down 14% Global Deals Intelligence Global High Yield Corporate Debt- Quarterly GLOBAL DEBT CAPITAL MARKETS ACTIVITY FALLS 8% - Overall global debt capital markets activity totaled US$6.6 Proceeds (US$b) $180 300 trillion during full year 2018, an 8% decrease compared to full year 2017 and the slowest full year period for global debt Global High Yield Debt ($b) Number of Offerings $160 capital markets activity since 2015. Fourth quarter global debt activity decreased 27% compared to the third quarter of this 250 year and marked the slowest fourth quarter for global debt since 2011. $140 $120 200 US INVESTMENT GRADE CORPORATE DEBT FALLS TO FOUR-YEAR LOW - High grade corporate debt offerings $100 targeted to the US marketplace totaled US$1.1 trillion during full year 2018, a 17% decrease compared to 2017. Despite 150 $80 strong gains in the Media and Entertainment, Retail and Consumer Staples sectors, full year 2018 marks the first year- over-year decline for the asset class since 2008. $60 100 $40 50 GLOBAL HIGH YIELD DOWN 37% - The volume of global high yield corporate debt reached US$267 billion during full $20 year 2018, a decline of 37% compared to 2017 and the slowest full year for global high yield issuance since 2009. United $0 States high yield issuers accounted for 45% of the total, down from 54% a year ago. China and the United Kingdom accounted for 9% and 8% of global issuance, respectively. High yield offerings from Financial issuers accounted for 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q of full year activity, up significantly from 17% during full year of 2017. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Global Debt Capital Markets by Asset Class MEDIA & ENTERTAINMENT OFFERINGS UP 18%; TECH & TELECOM LEAD DECLINERS – Bolstered by multi- billion bond offerings from Comcast, Altice, Charter and Netflix, DCM activity from Media & Entertainment issuers totaled Proceeds (US$t) US$88.1 billion during full year 2018, registering an industry-leading increase of 18% compared to year-ago levels. $2.4 Technology and Telecom activity saw the steepest year-over-year declines, registering a combined decrease of 48%. $2.2 Financials and Government & Agency issuers accounted for 73% of global debt offerings during full year 2018, up from $2.0 71% a year ago. $1.8 $1.6 EMERGING MARKETS CORPORATE DEBT DOWN 26% - Corporate debt from emerging markets issuers totaled $1.4 US$244.7 billion during full year 2018, down 26% compared to last year. Corporate debt issuers from India, Malaysia, $1.2 Thailand and Russia accounted for 42% of full year 2018 activity. Issuance from corporations in India totaled US$43.5 $1.0 billion, down 36% compared to levels seen during full year 2017. $0.8 $0.6 JP MORGAN TOPS GLOBAL DEBT LEAGUE TABLE – JP Morgan narrowly took the top spot for global debt $0.4 underwriting during full year 2018, with proceeds of US$370.0 billion and 5.6% share of the market. Citi fell to second $0.2 place with a market share decline of 1.1 points, while Bank of America Merrill Lynch held third place, with 4.8% of the $0.0 market. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 OVERALL DEBT UNDERWRITING FEES DECREASE 14% - According to estimates, underwriting fees from DCM activity totaled US$25.0 billion during full year 2018, a decrease of 14% year-on-year. Agency, Supranational, Sovereign Investment Grade Corporate Federal Credit Agency MBS Emerging Market Corporate ABS High Yield Corporate Global Debt, Equity & Equity-related (A1) Jan 1 - Dec 31 Global Debt and Syndicated Loans (DL1) Jan 1 - Dec 31 Proceeds per Bookrunner (US$m) # of Deals per Bookrunner Imputed Fees (US$m) Proceeds per Bookrunner (US$m) # of Deals per Bookrunner Imputed Fees (US$m) 2018 2017 Market Market# of Market Change in Manager Market Market 2018 2017 Market Market # of Market Change in Manager Market Market Bookrunner RankRank Proceeds Sh (%) Share Ch. Deals Sh (%) # of Deals Fees Sh (%) Share Ch. Bookrunner Rank Rank Proceeds Sh (%) Share Ch. Deals Sh (%) # of Deals Fees Sh (%) Share Ch. JP Morgan 1 1 421,587.7 5.8 -0.9▼ 1,814 7.2 -465 ▼ 2,975.87.0 -0.2 ▼ JP Morgan 11 726,236.5 7.3 +0.1 ▲ 2,502 9.6 -396 ▼ 2,475.6 6.2 +6.2 ▲ Citi 2 2 409,718.9 5.6 -1.0 ▼ 1,745 6.9 -493 ▼ 2,082.5 4.9 -0.7 ▼ Bank of America Merrill Lynch 2 2 658,544.8 6.6 +0.3 ▲ 2,281 8.7 -400 ▼ 2,374.0 5.9 +5.9 ▲ Bank of America Merrill Lynch 3 3 357,336.54.9 -0.6 ▼ 1,388 5.5 -490 ▼ 2,238.0 5.2 -0.1 ▼ Citi 3 3 596,046.9 6.0 +0.6 ▲ 2,029 7.7 -415 ▼ 1,940.5 4.8 +4.8 ▲ Barclays 4 6 310,752.3 4.3 -0.1 ▼ 1,137 4.5 -352 ▼ 1,342.8 3.1 -0.4 ▼ Wells Fargo & Co 4 4 416,627.2 4.2 -0.1 ▼ 1,713 6.5 -360 ▼ 1,415.5 3.5 +3.5 ▲ Goldman Sachs & Co 5 5 305,299.8 4.2 -0.5 ▼ 1,189 4.7 -241 ▼ 2,534.7 5.9 +0.5 ▲ Barclays 5 5 343,482.7 3.5+0.4 ▲ 1,302 5.0-301 ▼ 1,300.4 3.2 +3.2 ▲ Morgan Stanley 6 4 300,507.9 4.1 -0.6 ▼ 1,6276.4 -173 ▼ 2,474.0 5.8 +0.1 ▲ HSBC Holdings PLC 6 8 336,490.8 3.4 0 - 1,488 5.7 -76 ▼ 1,244.1 3.1 +3.1 ▲ HSBC Holdings PLC 75.07 257,438.9 3.5 0 -1,270 -89 ▼ 977.2 2.3 0 - Goldman Sachs & Co 7 6 332,981.8 3.4 +0.5 ▲ 1,110 4.2 -239 ▼ 1,392.9 3.5 +3.5 ▲ Deutsche Bank 88 224,819.5 3.1 -0.4 ▼ 1,093 4.3 -217 ▼ 1,230.6 2.9 -0.1 ▼ Morgan Stanley 87 291,608.3 2.9 +0.5 ▲ 1,347 5.1 -173 ▼ 1,163.1 2.9 +2.9 ▲ Credit Suisse 9 10 206,042.3 2.8 -0.1 ▼ 989 3.9 -155 ▼ 1,496.7 3.5 0 - Mizuho Financial Group 9 11 282,946.5 2.9 -0.2 ▼ 1,654 6.3 -25 ▼ 1,251.2 3.1 +3.1 ▲ Wells Fargo & Co 10 9 201,096.0 2.8 -0.3 ▼ 1,048 4.1 -284 ▼ 898.2 2.1 -0.4 ▼ BNP Paribas SA 10 10280,087.9 2.8 -0.1 ▼ 1,158 4.4 -116 ▼ 972.2 2.4 +2.4 ▲ Top Ten Total 2,994,599.8 41.1 -4.5 ▼ 18,250.5 42.7 -1.3 ▼ Top Ten Total 4,265,053.4 43.0 +2.0 ▲ 15,529.5 38.6 +38.6 ▲ Industry Total 7,263,268.2 100.0 25,276 +910 42,727.2 100.0 Industry Total 9,941,325.2 100.0 26,186 -3,091 40,086.0 100.0 Industry % Change from Same Period Last Year ‐8.5% ▼ -12.6% ▼ -13.3% ▼ Industry % Change from Same Period Last Year -2.4% ▼ -10.6% ▼ -6.6% ▼ Industry % Change from Last Quarter ‐25.8% ▼ -12.2% ▼ -27.1% ▼ Industry % Change from Last Quarter -38.5% ▼ -33.6% ▼ -41.9% ▼ Visit http://dmi.thomsonreuters.com to view archives and order custom League Tables https://www.thomsonone.com 1 Full Year 2018 | Debt Capital Markets | Managing Underwriters Global Debt Global Scorecard Global Debt (B1) Jan 1 - Dec 31 Jan 1 2018 - Dec 31 2018 Jan 1 2017 - Dec 31 2017 Proceeds per Bookrunner (US$m) # of Deals per Bookrunner Imputed Fees (US$m) Proceeds No.