Amplify your potential with Fixed Income BNY Mellon. It’s all right here. BNY Mellon Capital Markets, LLC, member FINRA/SIPC For US Institutional Distribution Only “Whether you’re looking for exceptional fixed income execution or world-class custody, at BNY Mellon, we give you the best of both worlds.” Adam Vos Head of BNY Mellon Markets 2 3 Fixed Income Why Choose at BNY Mellon BNY Mellon? We’ve been at the forefront of US fixed income Whether you’re simply seeking exposure to debt securities since the founding of the nation. or you’re a custody* client looking to enhance the performance of your assets, our fixed income offering is guided by six principles designed to help you achieve your goals. Warrant No. 1 issued by The facilitating primary and secondary 1. TRANSACTION EFFICIENCY Bank of New York on September trading in instruments from Transacting within our custody construct enables you to access straight- 13, 1789, represented the first US Treasuries to commercial through processing at settlement. This means as soon as your transaction tranche of a $200,000 loan to the paper and corporate bonds to settles, your cash or securities are in your account and available. newly established US government, mortgage-backed securities. extended to enable the fledging 2. MARKET CONNECTIVITY body to commence repayment Our fixed income specialists are We can connect you to a unique universe of counterparties, including of its Revolutionary War debt. here to assist you in meeting your 1,300 broker-dealers, fund managers, registered investment advisors, investment goals, informed by family offices and wealth managers through the Pershing network,** More than 230 years later, BNY decades of market experience over 5,000 credit unions and a large community of small and midsize Mellon remains at the center and supported by advanced US mortgage banks. of US fixed income markets, electronic trading capabilities. 3. UNIQUE PRODUCTS With a range of distinct products like CDARS and ICS, BNY Mellon* hands you access to innovative solutions not available through other providers. 4. EXECUTION OPTIONS Our array of enhanced execution capabilities – from electronic trading 1789 2020 on a range of venues to sophisticated algorithmic solutions† – ensures that you can execute however you see fit. 5. PEACE OF MIND Combining your fixed income execution† with custody* removes unnecessary links in the execution chain and lessens the potential for trade disruption. 6. TRUSTED COUNTERPARTY The world’s largest custodian, and one of the market’s most creditworthy financial institutions, today BNY Mellon continues its proud centuries-old tradition of being one of the globe’s most trusted banks. *Custody services, CDARS and ICS provided by The Bank of New York Mellon All references to BNY Mellon in this document refer to BNY Mellon Capital Markets LLC, unless stated otherwise. * *Network provided by BNY Mellon affiliate broker-dealer Pershing LLC 4 Products and services of our affiliates are available only to direct customers of those affiliates. †Services offered by BNY Mellon Capital Markets, LLC 5 It’s all right here. TREASURIES Ranked top 10 in traded volume, client inquiries and hit ratios.1 COMMERCIAL PAPER # Ranked 1 in executed volume with regional broker-dealers.2 MUNICIPAL BONDS # Ranked 5 in total number of municipal competitive deals underwritten in 2019.3 FIXED INCOME LENDING # Ranked 1 globally and in the Americas among fixed income agent lenders.4 1 Bloomberg US Treasury Dealer Rankings 2 Bloomberg 3 Bloomberg League Table Rankings 6 4 Securities Lending provided by The Bank of New York Mellon 7 At a Glance Short & Long-Duration Our Fixed US Treasuries Income Offering* As a leading US government securities settlement agent, we are a major participant in the US Treasury market. Our Treasuries desk also ranks in the top 10 among broker-dealers.5 Short-Duration Long-Duration SHORT-DURATION LONG-DURATION Instruments Instruments At the short end of the In the longer-dated space, curve, we offer: we facilitate trading in: Liquidity & Easy Access Customization & Generally Higher Yields Treasury Bills Treasury Bonds RATES Tenors: 1 month, 2 months, Tenors: 2 years, 3 years, 5 years, • US Treasuries & US Treasury • US Treasury Bills 3 months, 6 months, 1 year 7 years, 10 years, 20 years, 30 years • Treasury Floating Rate Notes Inflation-Protected Securities (TIPS) • Agency Discount Notes • Corporate Bonds Treasury Floating Rate Treasury Inflation-Protected • Municipal Bonds Notes (FRNs/Floaters) Securities (TIPS) CREDIT • US Agency Debt Tenor: 2 years Tenors: 5 years, 10 years, 30 years • Commercial Paper and Institutional CDs AGENCY MORTGAGE- BACKED SECURITIES • Short-Term Corporate Bonds Where you can find us: • Municipal Notes and Variable • TBA Securities Rate Demand Notes • Specified Pools — Bloomberg — BondDesk Group FDIC-INSURED DEPOSITS DEBT CAPITAL MARKETS — ICE Bondpoint — Tradeweb • Brokered Certificates of Deposit PUBLIC FINANCE — TMC Bonds † • CDARS OTC DERIVATIVES† • Insured Cash Sweep† *All services are provided by BNY Mellon Capital Markets, LLC, unless stated otherwise. 8 †OTC derivatives and FDIC-insured products are provided by The Bank of New York Mellon. 5 Bloomberg US Treasury Dealer Rankings 9 Short-Duration Short-Duration FDIC-Insured Deposits Commercial Paper Certificates of Deposit (CDs) offer investors the security of Commercial Paper (CP) allows creditworthy corporations, federal deposit insurance up to $250,000, enabling them to invest banks and other entities to secure short-term funding. Since with confidence and peace of mind. For issuers, CDs present a CP contains a credit component, investors can achieve higher stable and secure source of funding for a set term, allowing them yields when deploying cash in the CP market relative to to make plans for the future with a firm degree of certainty.6 short-term government fixed income products. CD ORIGINATORS CDARS*: Seeking large exposure OUR GROWTH STORY INSTITUTIONAL CDs We work closely with bank issuers to CDs but concerned about losing Since we launched in 2012, our desk As a significant dealer in Yankee to ascertain their funding needs, FDIC insurance? CDARS enables has grown from no commercial paper CDs and the domestic CD space, then originate CDs on their behalf. you to split a large CD holding dealerships to 75 dealerships today, we provide flow to more than 40 For community and midsize banks, into $250,000 increments among increasing market share while some banks active in the institutional credit card banks, and credit different issuers, allowing you competitors have retrenched. CD market. union issuers, our expertise in CD to establish an outsize CD position, structuring and market knowledge with the peace of mind of As of 2020, our desk averages BNY Mellon ranks #1 in is particularly invaluable. knowing that your investment is federally insured. $8 billion to # executed CP volume with regional broker-dealers.** CD INVESTORS 1 Insured Cash Sweep*: A cash $12 billion Our wide network of bank issuers BNY Mellon ranks #1 investment vehicle that operates in executed CP volume each day. enables us to present investors in executed CP volume, along the same lines as CDARS, # with a broad range of CDs and work ** Insured Cash Sweep enables 1 five months and longer. with them to select the investment you to split a large cash balance that works best for their return into $250,000 segments across Growth of CP Programs at expectations and risk tolerance. BNY Mellon Capital Markets multiple deposit accounts 80 We are also active in the secondary or money market funds to 70 75 CD market, providing liquidity gain yield while still enjoying 74 60 both for institutions looking for FDIC insurance. 63 50 new investment opportunities and 52 Unrivalled Distribution 40 investors seeking to exit positions. via Pershing LLC. 30 37 Number of Programs 20 8 10 3 5 17 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year of Launch 6FDIC deposit insurance applies to principal and accrued interest on all deposit accounts (including CDs) maintained in the same insurable capacity at a single institution, currently up to $250,000. You are responsible for monitoring the total amount of deposits that you hold with each institution to determine the extent of FDIC insurance available to you. 10 *CDARS and Insured Cash Sweep provided by The Bank of New York Mellon. **Bloomberg Rankings 11 Short & Long-Duration Short & Long-Duration US Agencies Municipal Bonds Agency securities can offer yield enhancement over US Municipal bonds (munis) are an attractive investment Treasuries without taking on substantially more credit risk. due to the favorable tax treatment they often enjoy Liquidity in Agencies is generally very deep, but the product over alternative fixed income instruments. is not as liquid as government securities. We trade: In addition, we also make markets Our strong relationships with Competitive Offering: For issuers in debt issued by the super governmental organizations across whose focus is borrowing cost AGENCY DISCOUNT NOTES sovereign community: the US have enabled us to rapidly above all else, we bid in blind Tenor: From 1 to 365 days EXIM – Export-Import Bank of the grow our presence in the muni auctions to deliver bonds to our United States; IFC – International market in recent years. network of institutional customers AGENCY FLOATING Finance Corporation; IDB – Inter- to endeavor to secure the issuer RATE NOTES American Development Bank; OPIC; Active in short-term muni notes, the lowest possible interest rate. Tenor: Customizable based TVA and The World Bank. variable rate demand notes and on issuer and investor needs. long-term muni bonds, we provide SECONDARY MARKET liquidity in both the primary and Can range from 6 months L ARGE & Our muni desk customers can secondary markets, servicing bond to 30 years. CUSTOMIZED BLOCKS buy and sell via voice or issuers and investors. Our desk can provide liquidity electronically.