U.S. Markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.04
    -1.53 (-2.86%)
     
  • Gold

    1,827.70
    -23.70 (-1.28%)
     
  • Silver

    24.83
    -0.97 (-3.77%)
     
  • EUR/USD

    1.2085
    -0.0079 (-0.6526%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • Vix

    24.34
    +1.09 (+4.69%)
     
  • GBP/USD

    1.3583
    -0.0057 (-0.4143%)
     
  • USD/JPY

    103.8710
    +0.0290 (+0.0279%)
     
  • BTC-USD

    37,202.32
    +184.04 (+0.50%)
     
  • CMC Crypto 200

    701.93
    -33.21 (-4.52%)
     
  • FTSE 100

    6,735.71
    -66.25 (-0.97%)
     
  • Nikkei 225

    28,519.18
    -179.12 (-0.62%)
     

Market Value of U.S. Common Stock Soars to Record-High 185% of GDP (Capital Market Research) (Weekly Market Outlook)

·285 min read

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>Market Value of <location value="LC/us" idsrc="xmltag.org" >U.S.</location> Common Stock Soars to Record-High 185% of GDP</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="author" content="John Lonski"/> <meta name="keywords" content=""/> <meta name="date" content="2021-01-14T16:22:28+00:00"/> <meta name="subject" content="January 9 s unexpectedly steep jump by initial state unemployment claims reminded us of the considerable loss of business activity to COVID-19-inspired shutdowns be they voluntary or forced. By itself, the sufficient adoption of COVID-19 vaccinations may be enough to supply a powerful short-term spur to business activity. Adding unprecedented monetary stimulus and additional fiscal stimulus to a vaccine-driven suppression of COVID-19-related risks strongly favors annual increases of at least 6% for nominal GDP and 10% for core pretax profits in 2021. Nevertheless, the possibly more stringent regulation of business activity and higher Treasury bond yields could offset the spur to expenditures delivered by additional fiscal stimulus. The Fed may need to prevent Treasury bond yields from rising to levels that impede the realization of full employment. Conceivably, the Fed might step up its buying of Treasury bonds in order to maximize the impact of fiscal stimulus."/> <style type="text/css"> <!-- .xflip { -moz-transform: scaleX(-1); -webkit-transform: scaleX(-1); -o-transform: scaleX(-1); transform: scaleX(-1); filter: fliph; } .yflip { -moz-transform: scaleY(-1); -webkit-transform: scaleY(-1); -o-transform: scaleY(-1); transform: scaleY(-1); filter: flipv; } .xyflip { -moz-transform: scaleX(-1) scaleY(-1); -webkit-transform: scaleX(-1) scaleY(-1); -o-transform: scaleX(-1) scaleY(-1); transform: scaleX(-1) scaleY(-1); filter: fliph + flipv; } --> </style> </head> <body bgcolor="#A0A0A0" vlink="blue" link="blue"> <!-- Page 1 --> <a name="1"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft00{font-size:10px;font-family:Times;color:#ffffff;} .ft01{font-size:10px;font-family:Times;color:#000000;} .ft02{font-size:25px;font-family:Times;color:#0090c5;} .ft03{font-size:11px;font-family:Times;color:#ffffff;} .ft04{font-size:10px;font-family:Times;color:#0090c5;} .ft05{font-size:9px;font-family:Times;color:#000000;} .ft06{font-size:14px;font-family:Times;color:#000000;} .ft07{font-size:13px;font-family:Times;color:#000000;} .ft08{font-size:28px;font-family:Times;color:#000000;} .ft09{font-size:7px;font-family:Times;color:#000000;} .ft010{font-size:16px;font-family:Times;color:#0000ff;} .ft011{font-size:13px;font-family:Times;color:#0090c5;} .ft012{font-size:14px;font-family:Times;color:#0090c5;} .ft013{font-size:16px;font-family:Times;color:#0090c5;} .ft014{font-size:12px;font-family:Times;color:#000000;} .ft015{font-size:19px;font-family:Times;color:#0000ff;} .ft016{font-size:19px;font-family:Times;color:#0090c5;} .ft017{font-size:10px;font-family:Times;color:#0090c5;} .ft018{font-size:11px;font-family:Times;color:#0090c5;} .ft019{font-size:3px;font-family:Times;color:#0090c5;} .ft020{font-size:11px;font-family:Times;color:#0078bd;} .ft021{font-size:11px;font-family:Times;color:#538dd3;} .ft022{font-size:10px;font-family:Times;color:#7b797b;} .ft023{font-size:10px;font-family:Times;color:#808080;} .ft024{font-size:11px;font-family:Times;color:#00afef;} .ft025{font-size:12px;font-family:Times;color:#00afef;} .ft026{font-size:10px;font-family:Times;color:#00afef;} .ft027{font-size:7px;line-height:11px;font-family:Times;color:#000000;} .ft028{font-size:12px;line-height:26px;font-family:Times;color:#000000;} .ft029{font-size:10px;line-height:14px;font-family:Times;color:#7b797b;} --> </style> <div id="page1-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022001.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:564px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:230px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:241px;left:51px;white-space:nowrap" class="ft02"><b>WEEKLY&#160;&#160;</b></p> <p style="position:absolute;top:272px;left:51px;white-space:nowrap" class="ft02"><b>MARKET&#160;OUTLOOK&#160;</b></p> <p style="position:absolute;top:32px;left:51px;white-space:nowrap" class="ft03"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:48px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:63px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:78px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:94px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:109px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:124px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:139px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:155px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:170px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:185px;left:51px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:24px;left:711px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:38px;left:549px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1077px;left:39px;white-space:nowrap" class="ft05">Moody’s&#160;Analytics&#160;markets&#160;and&#160;distributes&#160;all&#160;Moody’s&#160;Capital&#160;Markets&#160;Research,&#160;Inc.&#160;materials.&#160;Moody’s&#160;<org>Capital&#160;Markets&#160;Research, Inc.</org> is&#160;a&#160;subsidiary&#160;of&#160;Moody’s&#160;Corporation.&#160;Moody’s&#160;</p> <p style="position:absolute;top:1091px;left:39px;white-space:nowrap" class="ft05">Analytics&#160;does&#160;not&#160;provide investment&#160;advisory&#160;services&#160;or products.&#160;For&#160;further&#160;detail,&#160;please see the last&#160;page.&#160;</p> <p style="position:absolute;top:48px;left:984px;white-space:nowrap" class="ft06"><i>&#160;</i></p> <p style="position:absolute;top:130px;left:1088px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:130px;left:1131px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:130px;left:1179px;white-space:nowrap" class="ft01">&#160;&#160;&#160;</p> <p style="position:absolute;top:146px;left:1087px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:146px;left:1207px;white-space:nowrap" class="ft01">&#160;&#160;</p> <p style="position:absolute;top:161px;left:1069px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:161px;left:1143px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:161px;left:1193px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:70px;left:1022px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:224px;left:298px;white-space:nowrap" class="ft08">Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;Stock&#160;Soars&#160;to&#160;</p> <p style="position:absolute;top:260px;left:298px;white-space:nowrap" class="ft08">Record-High 185%&#160;of&#160;GDP&#160;</p> <p style="position:absolute;top:295px;left:298px;white-space:nowrap" class="ft027">&#160;<br/>&#160;</p> <p style="position:absolute;top:319px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#1">Credit Markets&#160;Review&#160;and&#160;Outlook</a></p> <p style="position:absolute;top:321px;left:565px;white-space:nowrap" class="ft011"><a href="PBC_1261022.html#1">&#160;&#160;</a></p> <p style="position:absolute;top:320px;left:572px;white-space:nowrap" class="ft012">by&#160;John&#160;Lonski&#160;</p> <p style="position:absolute;top:340px;left:298px;white-space:nowrap" class="ft07">Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;Stock&#160;Soars&#160;to Record-High 185%&#160;of&#160;GDP&#160;</p> <p style="position:absolute;top:363px;left:718px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:362px;left:729px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:766px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;2&#160;</p> <p style="position:absolute;top:387px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#7">The Week&#160;Ahead</a></p> <p style="position:absolute;top:387px;left:424px;white-space:nowrap" class="ft013"><a href="PBC_1261022.html#7">&#160;</a></p> <p style="position:absolute;top:407px;left:298px;white-space:nowrap" class="ft07">We&#160;preview economic&#160;reports&#160;and&#160;forecasts&#160;from&#160;the&#160;US,&#160;<location value="LC/gb" idsrc="xmltag.org" >UK</location>/<location value="LR/eur" idsrc="xmltag.org" >Europe</location>,&#160;and&#160;<location value="LR/asp" idsrc="xmltag.org" >Asia/Pacific</location>&#160;regions.&#160;</p> <p style="position:absolute;top:430px;left:722px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:429px;left:733px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:431px;left:767px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;7&#160;</p> <p style="position:absolute;top:451px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#13">The&#160;Long View&#160;</a></p> <p style="position:absolute;top:471px;left:298px;white-space:nowrap" class="ft013">&#160;</p> <p style="position:absolute;top:492px;left:298px;white-space:nowrap" class="ft07">Full&#160;updated&#160;stories&#160;and&#160;</p> <p style="position:absolute;top:510px;left:298px;white-space:nowrap" class="ft07">key&#160;credit&#160;market&#160;metrics:&#160;</p> <p style="position:absolute;top:528px;left:298px;white-space:nowrap" class="ft07">Already&#160;thin&#160;spreads&#160;</p> <p style="position:absolute;top:546px;left:298px;white-space:nowrap" class="ft07">suggest&#160;investment-grade&#160;</p> <p style="position:absolute;top:564px;left:298px;white-space:nowrap" class="ft07">corporate&#160;bond&#160;yields&#160;are&#160;</p> <p style="position:absolute;top:582px;left:298px;white-space:nowrap" class="ft07">likely&#160;to&#160;trend&#160;higher.&#160;</p> <p style="position:absolute;top:612px;left:298px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:642px;left:298px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:672px;left:298px;white-space:nowrap" class="ft028">&#160;<br/>&#160;<br/>&#160;<br/>&#160;</p> <p style="position:absolute;top:777px;left:721px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:775px;left:732px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:777px;left:761px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;13&#160;</p> <p style="position:absolute;top:803px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#16">Ratings&#160;Round-Up</a></p> <p style="position:absolute;top:805px;left:434px;white-space:nowrap" class="ft012"><a href="PBC_1261022.html#16">&#160;</a></p> <p style="position:absolute;top:824px;left:298px;white-space:nowrap" class="ft07"><location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Changes&#160;Continue&#160;a&#160;Positive&#160;Trend&#160;</p> <p style="position:absolute;top:847px;left:721px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:846px;left:732px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:848px;left:761px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;16&#160;</p> <p style="position:absolute;top:872px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#19">Market Data</a></p> <p style="position:absolute;top:872px;left:392px;white-space:nowrap" class="ft013"><a href="PBC_1261022.html#19">&#160;</a></p> <p style="position:absolute;top:872px;left:446px;white-space:nowrap" class="ft013">&#160;</p> <p style="position:absolute;top:893px;left:298px;white-space:nowrap" class="ft07">Credit&#160;spreads,&#160;CDS&#160;movers,&#160;issuance.&#160;</p> <p style="position:absolute;top:911px;left:721px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:910px;left:732px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:912px;left:761px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;19&#160;</p> <p style="position:absolute;top:933px;left:298px;white-space:nowrap" class="ft010"><a href="PBC_1261022.html#24">Moody’s&#160;Capital&#160;Markets&#160;Research</a></p> <p style="position:absolute;top:931px;left:555px;white-space:nowrap" class="ft015"><a href="PBC_1261022.html#24">&#160;&#160;</a></p> <p style="position:absolute;top:935px;left:565px;white-space:nowrap" class="ft012"><a href="PBC_1261022.html#24">recent&#160;publications</a></p> <p style="position:absolute;top:931px;left:687px;white-space:nowrap" class="ft016"><a href="PBC_1261022.html#24">&#160;</a></p> <p style="position:absolute;top:954px;left:298px;white-space:nowrap" class="ft07">Links&#160;to&#160;commentaries&#160;on:&#160;Stimulus,&#160;core&#160;profits,&#160;yield&#160;spreads,&#160;resurgent&#160;virus,&#160;split&#160;<org>Congress</org>,&#160;</p> <p style="position:absolute;top:972px;left:298px;white-space:nowrap" class="ft07">misery,&#160;issuance&#160;boom,&#160;default&#160;rate,&#160;volatility,&#160;credit quality,&#160;unprecedented&#160;bond yields,&#160;</p> <p style="position:absolute;top:990px;left:298px;white-space:nowrap" class="ft07">record&#160;savings&#160;rates,&#160;demographic&#160;change,&#160;high&#160;tech,&#160;complacency,&#160;Fed intervention,&#160;</p> <p style="position:absolute;top:1008px;left:298px;white-space:nowrap" class="ft07">speculation,&#160;risk,&#160;credit&#160;stress,&#160;rate&#160;cuts,&#160;optimism,&#160;coronavirus,&#160;corporate&#160;credit,&#160;leverage,&#160;VIX.&#160;</p> <p style="position:absolute;top:1026px;left:298px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1044px;left:719px;white-space:nowrap" class="ft01">»</p> <p style="position:absolute;top:1043px;left:729px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1045px;left:759px;white-space:nowrap" class="ft01">FULL&#160;STORY&#160;PAGE&#160;&#160;24&#160;</p> <p style="position:absolute;top:478px;left:485px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:493px;left:485px;white-space:nowrap" class="ft01">Credit&#160;</p> <p style="position:absolute;top:507px;left:485px;white-space:nowrap" class="ft01">Spreads&#160;</p> <p style="position:absolute;top:478px;left:558px;white-space:nowrap" class="ft01">Investment&#160;Grade:&#160;Year-end 2021’s&#160;average&#160;investment&#160;grade&#160;</p> <p style="position:absolute;top:493px;left:558px;white-space:nowrap" class="ft01">bond spread&#160;may&#160;slightly&#160;exceed&#160;its&#160;recent&#160;101&#160;basis points.&#160;</p> <p style="position:absolute;top:507px;left:558px;white-space:nowrap" class="ft01">High Yield:&#160;A&#160;composite&#160;high-yield&#160;spread&#160;may&#160;top&#160;its&#160;recent&#160;</p> <p style="position:absolute;top:522px;left:558px;white-space:nowrap" class="ft01">381&#160;bp&#160;by year-end 2021.&#160;</p> <p style="position:absolute;top:537px;left:485px;white-space:nowrap" class="ft01">Defaults&#160;</p> <p style="position:absolute;top:537px;left:558px;white-space:nowrap" class="ft01">US&#160;HY&#160;default&#160;rate:&#160;According&#160;to&#160;Moody's&#160;Investors&#160;Service,&#160;</p> <p style="position:absolute;top:552px;left:558px;white-space:nowrap" class="ft01">the&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>'&#160;trailing&#160;12-month high-yield&#160;default&#160;rate jumped&#160;</p> <p style="position:absolute;top:567px;left:558px;white-space:nowrap" class="ft01">from&#160;December&#160;2019’s&#160;4.3%&#160;to&#160;December&#160;2020’s&#160;8.4%&#160;and&#160;</p> <p style="position:absolute;top:581px;left:558px;white-space:nowrap" class="ft01">may&#160;average 7.9%&#160;for&#160;2021’s&#160;second&#160;quarter.&#160;</p> <p style="position:absolute;top:596px;left:485px;white-space:nowrap" class="ft01">Issuance&#160;</p> <p style="position:absolute;top:596px;left:558px;white-space:nowrap" class="ft01">For 2019’s</p> <p style="position:absolute;top:594px;left:609px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:596px;left:613px;white-space:nowrap" class="ft01">offerings&#160;of US$-denominated corporate&#160;bonds,&#160;</p> <p style="position:absolute;top:611px;left:558px;white-space:nowrap" class="ft01">IG&#160;bond issuance&#160;rose&#160;2.6%&#160;to&#160;<money>$1.309&#160;trillion</money>,&#160;while&#160;high-</p> <p style="position:absolute;top:626px;left:558px;white-space:nowrap" class="ft01">yield bond issuance&#160;surged by&#160;55.8%&#160;to&#160;<money>$432&#160;billion</money>.&#160;&#160;</p> <p style="position:absolute;top:640px;left:558px;white-space:nowrap" class="ft01">In&#160;2020,&#160;US$-denominated corporate&#160;bond issuance&#160;soared&#160;</p> <p style="position:absolute;top:655px;left:558px;white-space:nowrap" class="ft01">53.7%&#160;for&#160;IG&#160;to&#160;a&#160;record&#160;<money>$2.012&#160;trillion</money>,&#160;while&#160;high-yield&#160;</p> <p style="position:absolute;top:669px;left:558px;white-space:nowrap" class="ft01">advanced&#160;31.8%&#160;to&#160;a&#160;record-high&#160;<money>$570&#160;billion</money>.&#160;</p> <p style="position:absolute;top:684px;left:558px;white-space:nowrap" class="ft01">For&#160;2021,&#160;US$-denominated corporate&#160;bond offerings&#160;may&#160;</p> <p style="position:absolute;top:698px;left:558px;white-space:nowrap" class="ft01">decline&#160;24.7%&#160;(to&#160;<money>$1.52&#160;trillion</money>)&#160;for&#160;IG&#160;and&#160;drop&#160;14.8%&#160;(to&#160;</p> <p style="position:absolute;top:713px;left:558px;white-space:nowrap" class="ft01"><money>$485&#160;billion</money>)&#160;for&#160;high-yield,&#160;where&#160;both&#160;forecasts&#160;top&#160;their&#160;</p> <p style="position:absolute;top:728px;left:558px;white-space:nowrap" class="ft01">respective annual&#160;averages&#160;for&#160;the five years&#160;ended&#160;2020&#160;of&#160;</p> <p style="position:absolute;top:742px;left:558px;white-space:nowrap" class="ft01"><money>$1.494 trillion</money>&#160;for&#160;IG&#160;and&#160;<money>$410 billion</money>&#160;for&#160;high-yield.&#160;</p> <p style="position:absolute;top:255px;left:61px;white-space:nowrap" class="ft017">&#160;</p> <p style="position:absolute;top:287px;left:61px;white-space:nowrap" class="ft017">&#160;</p> <p style="position:absolute;top:323px;left:61px;white-space:nowrap" class="ft018">Moody’s</p> <p style="position:absolute;top:330px;left:109px;white-space:nowrap" class="ft019">&#160;</p> <p style="position:absolute;top:323px;left:110px;white-space:nowrap" class="ft018">Analytics&#160;Research&#160;</p> <p style="position:absolute;top:347px;left:61px;white-space:nowrap" class="ft020"><i>Weekly&#160;M</i></p> <p style="position:absolute;top:347px;left:113px;white-space:nowrap" class="ft021"><i>arke</i></p> <p style="position:absolute;top:347px;left:136px;white-space:nowrap" class="ft020"><i>t&#160;Outlook&#160;Contributors:&#160;</i></p> <p style="position:absolute;top:363px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:377px;left:61px;white-space:nowrap" class="ft020"><i>Moody's&#160;Analytics/<location value="LU/us.ny.nyc" idsrc="xmltag.org" >New York</location>:&#160;</i></p> <p style="position:absolute;top:393px;left:61px;white-space:nowrap" class="ft022">John&#160;Lonski&#160;</p> <p style="position:absolute;top:407px;left:61px;white-space:nowrap" class="ft022">Chief&#160;Capital&#160;Markets&#160;Economist&#160;</p> <p style="position:absolute;top:421px;left:61px;white-space:nowrap" class="ft022"><PhoneNo>1.212.553</PhoneNo>.7144&#160;&#160;</p> <p style="position:absolute;top:435px;left:61px;white-space:nowrap" class="ft023"><a href="mailto:john.lonski@moodys.com">john.lonski@moodys.com</a></p> <p style="position:absolute;top:435px;left:183px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:449px;left:61px;white-space:nowrap" class="ft029">&#160;<br/>Yukyung&#160;Choi&#160;</p> <p style="position:absolute;top:478px;left:61px;white-space:nowrap" class="ft029">Quantitative&#160;Research&#160;<br/>&#160;</p> <p style="position:absolute;top:506px;left:61px;white-space:nowrap" class="ft020"><i>Moody's&#160;Analytics/<location value="LR/asp" idsrc="xmltag.org" >Asia-Pacific</location>:&#160;</i></p> <p style="position:absolute;top:522px;left:61px;white-space:nowrap" class="ft022">Shahana&#160;Mukherjee&#160;</p> <p style="position:absolute;top:536px;left:61px;white-space:nowrap" class="ft022">Economist&#160;</p> <p style="position:absolute;top:550px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:565px;left:61px;white-space:nowrap" class="ft022">Christina&#160;Zhu&#160;</p> <p style="position:absolute;top:579px;left:61px;white-space:nowrap" class="ft022">Economist&#160;</p> <p style="position:absolute;top:593px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:608px;left:61px;white-space:nowrap" class="ft020"><i>Moody's&#160;Analytics/<location value="LR/eur" idsrc="xmltag.org" >Europe</location>:</i></p> <p style="position:absolute;top:609px;left:204px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:624px;left:61px;white-space:nowrap" class="ft022"><person>Ross Cioffi</person>&#160;</p> <p style="position:absolute;top:638px;left:61px;white-space:nowrap" class="ft022">Economist&#160;</p> <p style="position:absolute;top:652px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:667px;left:61px;white-space:nowrap" class="ft020"><i>Moody’s&#160;Analytics/<location value="LC/us" idsrc="xmltag.org" >U.S.</location>:&#160;</i></p> <p style="position:absolute;top:682px;left:61px;white-space:nowrap" class="ft022">Mark&#160;Zandi&#160;</p> <p style="position:absolute;top:696px;left:61px;white-space:nowrap" class="ft022">Chief&#160;Economist,&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:710px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:724px;left:61px;white-space:nowrap" class="ft022">Michael&#160;Ferlez&#160;</p> <p style="position:absolute;top:737px;left:61px;white-space:nowrap" class="ft022">Economist&#160;</p> <p style="position:absolute;top:751px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:773px;left:61px;white-space:nowrap" class="ft018">Editor&#160;</p> <p style="position:absolute;top:789px;left:61px;white-space:nowrap" class="ft029"><person>Reid Kanaley</person>&#160;<br/>&#160;</p> <p style="position:absolute;top:818px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:835px;left:68px;white-space:nowrap" class="ft024">Clic<a href="http://www.moodys.com/wco">k&#160;here&#160;f</a>or&#160;</p> <p style="position:absolute;top:834px;left:146px;white-space:nowrap" class="ft025">Moody’s&#160;Credit&#160;</p> <p style="position:absolute;top:850px;left:68px;white-space:nowrap" class="ft025">Outlook</p> <p style="position:absolute;top:851px;left:116px;white-space:nowrap" class="ft024">,&#160;our sister publication&#160;</p> <p style="position:absolute;top:866px;left:68px;white-space:nowrap" class="ft024">containing&#160;Moody’s&#160;rating&#160;</p> <p style="position:absolute;top:882px;left:68px;white-space:nowrap" class="ft024">agency analysis&#160;of&#160;recent&#160;news&#160;</p> <p style="position:absolute;top:897px;left:68px;white-space:nowrap" class="ft024">events,&#160;summaries&#160;of&#160;recent&#160;</p> <p style="position:absolute;top:912px;left:68px;white-space:nowrap" class="ft024">rating&#160;changes,&#160;and&#160;summaries&#160;</p> <p style="position:absolute;top:928px;left:68px;white-space:nowrap" class="ft024">of&#160;recent&#160;research.&#160;</p> <p style="position:absolute;top:952px;left:61px;white-space:nowrap" class="ft022">&#160;</p> <p style="position:absolute;top:966px;left:61px;white-space:nowrap" class="ft022">Contac<a href="mailto:help@economy.com">t:&#160;</a></p> <p style="position:absolute;top:966px;left:104px;white-space:nowrap" class="ft023"><a href="mailto:help@economy.com"><a href="mailto:help@economy.com">help@economy.com</a></a></p> <p style="position:absolute;top:966px;left:202px;white-space:nowrap" class="ft022"><a href="mailto:help@economy.com">&#160;</a></p> <p style="position:absolute;top:105px;left:1054px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:792px;left:-129px;white-space:nowrap" class="ft026">&#160;</p> </div> <!-- Page 2 --> <a name="2"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft030{font-size:7px;font-family:Times;color:#808080;} .ft031{font-size:12px;font-family:Times;color:#0090c5;} .ft032{font-size:12px;font-family:Times;color:#00785a;} .ft033{font-size:21px;font-family:Times;color:#0078bd;} .ft034{font-size:21px;line-height:28px;font-family:Times;color:#0078bd;} --> </style> <div id="page2-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022002.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:229px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:25px;left:686px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:39px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">2&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:58px;left:67px;white-space:nowrap" class="ft031">Credit&#160;Markets</p> <p style="position:absolute;top:58px;left:159px;white-space:nowrap" class="ft032">&#160;</p> <p style="position:absolute;top:58px;left:162px;white-space:nowrap" class="ft031">Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:88px;left:230px;white-space:nowrap" class="ft016">Credit&#160;Markets&#160;Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:113px;left:230px;white-space:nowrap" class="ft07">By&#160;John&#160;Lonski,&#160;Chief&#160;Capital&#160;Markets&#160;Economist,&#160;Moody’s&#160;Capital&#160;Markets&#160;Research&#160;</p> <p style="position:absolute;top:132px;left:230px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:150px;left:230px;white-space:nowrap" class="ft034">Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;Stock&#160;Soars&#160;to&#160;Record-High&#160;185%&#160;<br/>of&#160;GDP&#160;<br/>&#160;</p> <p style="position:absolute;top:235px;left:230px;white-space:nowrap" class="ft07">January&#160;9’s&#160;unexpectedly&#160;steep&#160;jump&#160;by&#160;initial state unemployment&#160;claims&#160;reminded&#160;us&#160;of&#160;the considerable&#160;</p> <p style="position:absolute;top:253px;left:230px;white-space:nowrap" class="ft07">loss of business activity&#160;to&#160;COVID-19-inspired&#160;shutdowns&#160;be they&#160;voluntary&#160;or&#160;forced.&#160;By&#160;itself,&#160;the&#160;</p> <p style="position:absolute;top:271px;left:229px;white-space:nowrap" class="ft07">sufficient&#160;adoption&#160;of&#160;COVID-19&#160;vaccinations&#160;may&#160;be&#160;enough&#160;to supply&#160;a powerful&#160;short-term&#160;spur&#160;to&#160;</p> <p style="position:absolute;top:289px;left:230px;white-space:nowrap" class="ft07">business&#160;activity.&#160;Adding&#160;unprecedented monetary&#160;stimulus&#160;and additional&#160;fiscal&#160;stimulus&#160;to&#160;a vaccine-</p> <p style="position:absolute;top:307px;left:230px;white-space:nowrap" class="ft07">driven&#160;suppression&#160;of COVID-19-related risks&#160;strongly&#160;favors&#160;annual&#160;increases&#160;of&#160;at&#160;least&#160;6% for&#160;nominal&#160;</p> <p style="position:absolute;top:325px;left:230px;white-space:nowrap" class="ft07">GDP&#160;and 10% for&#160;core&#160;pretax&#160;profits&#160;in 2021.&#160;Nevertheless,&#160;the&#160;possibly&#160;more&#160;stringent&#160;regulation&#160;of&#160;</p> <p style="position:absolute;top:343px;left:230px;white-space:nowrap" class="ft07">business&#160;activity&#160;and&#160;higher&#160;<org>Treasury</org>&#160;bond&#160;yields&#160;could&#160;offset&#160;the spur&#160;to&#160;expenditures&#160;delivered&#160;by&#160;</p> <p style="position:absolute;top:361px;left:230px;white-space:nowrap" class="ft07">additional&#160;fiscal&#160;stimulus.&#160;&#160;</p> <p style="position:absolute;top:391px;left:230px;white-space:nowrap" class="ft07"><org>The Fed</org>&#160;may&#160;need&#160;to&#160;prevent&#160;<org>Treasury</org>&#160;bond&#160;yields&#160;from&#160;rising&#160;to&#160;levels&#160;that&#160;impede the realization&#160;of&#160;full&#160;</p> <p style="position:absolute;top:409px;left:230px;white-space:nowrap" class="ft07">employment.&#160;Conceivably,&#160;the&#160;Fed might&#160;step&#160;up&#160;its&#160;buying&#160;of&#160;<org>Treasury</org>&#160;bonds&#160;in order&#160;to maximize&#160;the&#160;</p> <p style="position:absolute;top:427px;left:230px;white-space:nowrap" class="ft07">impact&#160;of fiscal&#160;stimulus.&#160;</p> <p style="position:absolute;top:457px;left:230px;white-space:nowrap" class="ft07">The average&#160;forecasts&#160;for&#160;2021&#160;from&#160;an early-January&#160;survey&#160;of&#160;49&#160;prognosticators&#160;by&#160;Blue-Chip&#160;Economic&#160;</p> <p style="position:absolute;top:475px;left:230px;white-space:nowrap" class="ft07">Indicators&#160;put&#160;nominal&#160;GDP&#160;growth&#160;at&#160;6.0%&#160;and&#160;core&#160;pretax&#160;profits&#160;growth&#160;at&#160;8.1%.&#160;However,&#160;the&#160;latter&#160;</p> <p style="position:absolute;top:493px;left:230px;white-space:nowrap" class="ft07">was&#160;skewed lower&#160;by&#160;one&#160;forecaster’s&#160;call&#160;for&#160;an&#160;16.0% annual&#160;contraction by&#160;core&#160;profits.&#160;Thus,&#160;the&#160;median&#160;</p> <p style="position:absolute;top:511px;left:230px;white-space:nowrap" class="ft07">projected increase&#160;of&#160;10.7% for&#160;2021’s&#160;core&#160;profits&#160;might&#160;better&#160;capture&#160;the&#160;expected rate&#160;of&#160;corporate&#160;</p> <p style="position:absolute;top:529px;left:230px;white-space:nowrap" class="ft07">earnings&#160;growth.&#160;</p> <p style="position:absolute;top:559px;left:230px;white-space:nowrap" class="ft07">Relatively&#160;low rates&#160;of&#160;industrial&#160;capacity&#160;utilization&#160;and&#160;ample&#160;labor&#160;market&#160;slack&#160;suggest that operating&#160;</p> <p style="position:absolute;top:577px;left:230px;white-space:nowrap" class="ft07">leverage will take effect&#160;in&#160;2021.&#160;Operating leverage implies&#160;that&#160;the percent&#160;increase by&#160;core pretax&#160;profits&#160;</p> <p style="position:absolute;top:595px;left:230px;white-space:nowrap" class="ft07">will be a&#160;multiple of&#160;the percent&#160;increase of&#160;business&#160;sales,&#160;where the growth of&#160;business&#160;sales&#160;is&#160;highly&#160;</p> <p style="position:absolute;top:613px;left:230px;white-space:nowrap" class="ft07">correlated with&#160;nominal&#160;GDP.&#160;</p> <p style="position:absolute;top:643px;left:230px;white-space:nowrap" class="ft07">In anticipation&#160;of&#160;a&#160;brisk&#160;climb&#160;by&#160;corporate&#160;earnings,&#160;the&#160;market&#160;value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;common stock&#160;topped <money>$40</money>&#160;</p> <p style="position:absolute;top:661px;left:230px;white-space:nowrap" class="ft07">trillion&#160;for&#160;the&#160;first&#160;time.&#160;The&#160;market&#160;value&#160;of&#160;common&#160;stock&#160;now approximates&#160;a&#160;record-high 185%&#160;of&#160;GDP.&#160;</p> <p style="position:absolute;top:691px;left:230px;white-space:nowrap" class="ft07">During&#160;the equity&#160;market&#160;bubble of&#160;1999-2000,&#160;the <location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;equity&#160;market&#160;crested&#160;at&#160;a&#160;first-quarter&#160;2000’s&#160;</p> <p style="position:absolute;top:709px;left:230px;white-space:nowrap" class="ft07">then unprecedented 137% of&#160;GDP.&#160;That&#160;zenith&#160;lasted until&#160;the&#160;ratio&#160;rose&#160;to 140% in&#160;2018’s&#160;first&#160;quarter.&#160;</p> <p style="position:absolute;top:739px;left:230px;white-space:nowrap" class="ft07">The&#160;now record&#160;high&#160;ratio&#160;of&#160;the&#160;market&#160;value&#160;of&#160;common equity&#160;to&#160;GDP&#160;partly&#160;stems&#160;from&#160;historically&#160;low&#160;</p> <p style="position:absolute;top:757px;left:230px;white-space:nowrap" class="ft07">corporate bond&#160;yields.&#160;Corporate bond&#160;yields&#160;were relatively&#160;high during&#160;the <location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;equity&#160;market’s&#160;bubble&#160;</p> <p style="position:absolute;top:775px;left:230px;white-space:nowrap" class="ft07">years&#160;of&#160;1999-2000.&#160;</p> <p style="position:absolute;top:805px;left:230px;white-space:nowrap" class="ft07">For&#160;example,&#160;the&#160;Moody’s&#160;Analytics&#160;long-term&#160;Baa industrial&#160;company&#160;bond yield averaged 8.28% when&#160;</p> <p style="position:absolute;top:823px;left:230px;white-space:nowrap" class="ft07">the <location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;stock&#160;market&#160;peaked at&#160;135% of&#160;GDP&#160;in 2000’s&#160;first&#160;quarter.&#160;The&#160;average&#160;long-term&#160;Baa industrial&#160;</p> <p style="position:absolute;top:841px;left:230px;white-space:nowrap" class="ft07">bond yield of&#160;2000’s&#160;first&#160;quarter&#160;even topped its&#160;7.60% average&#160;of&#160;1997-1999.&#160;</p> <p style="position:absolute;top:871px;left:230px;white-space:nowrap" class="ft07">In stark&#160;contrast,&#160;the&#160;recent&#160;3.27% long-term&#160;Baa&#160;industrial&#160;bond yield was&#160;not&#160;only&#160;well&#160;under&#160;its&#160;4.43%&#160;</p> <p style="position:absolute;top:889px;left:230px;white-space:nowrap" class="ft07">average&#160;of&#160;2018-2020,&#160;it&#160;also&#160;was&#160;less&#160;than each&#160;of&#160;its&#160;prior&#160;month-long&#160;averages&#160;going&#160;back&#160;to the&#160;3.25%&#160;</p> <p style="position:absolute;top:907px;left:230px;white-space:nowrap" class="ft07">of&#160;October&#160;1952.&#160;</p> <p style="position:absolute;top:937px;left:230px;white-space:nowrap" class="ft07">The&#160;Fed’s&#160;suppression of&#160;<org>Treasury</org>&#160;bond yields&#160;and willingness&#160;to extend extraordinary&#160;support&#160;to&#160;corporate&#160;</p> <p style="position:absolute;top:955px;left:230px;white-space:nowrap" class="ft07">credit&#160;has&#160;helped&#160;to&#160;rein-in&#160;both&#160;corporate&#160;bond yields&#160;and their&#160;spreads&#160;over&#160;<org>Treasury</org>&#160;yields.&#160;January&#160;13’s&#160;</p> <p style="position:absolute;top:973px;left:230px;white-space:nowrap" class="ft07">145&#160;basis-point&#160;spread over&#160;the&#160;long&#160;<org>Treasury</org>&#160;yield for&#160;the&#160;long-term&#160;Baa industrial&#160;yield was&#160;the&#160;narrowest&#160;</p> <p style="position:absolute;top:991px;left:230px;white-space:nowrap" class="ft07">since&#160;the&#160;143&#160;bp&#160;of <chron>February&#160;9,&#160;2018.</chron>&#160;The long-term&#160;Baa&#160;industrial&#160;yield&#160;spread&#160;of 2000’s first&#160;quarter&#160;</p> <p style="position:absolute;top:1009px;left:230px;white-space:nowrap" class="ft07">averaged a wider&#160;181&#160;bp,&#160;which&#160;was&#160;above&#160;its&#160;174&#160;bp&#160;median&#160;of&#160;the&#160;30-years-ended 2020.&#160;</p> <p style="position:absolute;top:1039px;left:230px;white-space:nowrap" class="ft07">Unlike the ratio&#160;of&#160;the market&#160;value of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;common&#160;stock to&#160;GDP,&#160;the ratio&#160;of&#160;the market&#160;value of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;</p> <p style="position:absolute;top:1057px;left:230px;white-space:nowrap" class="ft07">common stock&#160;to the&#160;moving&#160;yearlong&#160;average&#160;of&#160;core&#160;after-tax&#160;profits&#160;remains&#160;well&#160;under&#160;its&#160;24.8:1&#160;zenith&#160;</p> <p style="position:absolute;top:1075px;left:230px;white-space:nowrap" class="ft07">of&#160;2000’s&#160;third&#160;quarter.&#160;Though the latest&#160;18.4:1&#160;ratio&#160;of&#160;the market&#160;value of&#160;equities&#160;to&#160;core after-tax&#160;</p> </div> <!-- Page 3 --> <a name="3"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft035{font-size:12px;font-family:Times;color:#0078bd;} .ft036{font-size:8px;font-family:Times;color:#000000;} .ft037{font-size:11px;font-family:Times;color:#000000;} .ft038{font-size:11px;font-family:Times;color:#000000;} .ft039{font-size:9px;line-height:14px;font-family:Times;color:#000000;} --> </style> <div id="page3-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022003.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:229px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:25px;left:686px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:39px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">3&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:58px;left:67px;white-space:nowrap" class="ft031">Credit&#160;Markets</p> <p style="position:absolute;top:58px;left:159px;white-space:nowrap" class="ft032">&#160;</p> <p style="position:absolute;top:58px;left:162px;white-space:nowrap" class="ft031">Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:87px;left:230px;white-space:nowrap" class="ft07">profits&#160;was&#160;the highest&#160;since the 18.6:1&#160;of&#160;2001’s&#160;third quarter,&#160;it&#160;remains&#160;under&#160;its&#160;21.8:1&#160;average&#160;for&#160;the&#160;</p> <p style="position:absolute;top:105px;left:230px;white-space:nowrap" class="ft07">span beginning&#160;with&#160;1999’s&#160;second-quarter&#160;and&#160;ending&#160;with&#160;2001’s&#160;second-quarter.&#160;As&#160;with&#160;the equity&#160;</p> <p style="position:absolute;top:123px;left:230px;white-space:nowrap" class="ft07">market’s&#160;record-high&#160;ratio&#160;vis-a-vis&#160;GDP,&#160;the equity&#160;market’s&#160;now&#160;historically&#160;high ratio&#160;vis-a-vis after-tax&#160;</p> <p style="position:absolute;top:141px;left:230px;white-space:nowrap" class="ft07">profits&#160;owes&#160;much&#160;to historically&#160;low corporate&#160;bond yields.&#160;</p> <p style="position:absolute;top:546px;left:860px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:580px;left:230px;white-space:nowrap" class="ft035">Borrowing&#160;Benefited&#160;High-Yield&#160;Credit&#160;Ratings&#160;on Balance&#160;</p> <p style="position:absolute;top:597px;left:230px;white-space:nowrap" class="ft07">We&#160;are&#160;not&#160;even halfway&#160;through&#160;January&#160;and US$-denominated corporate&#160;bond&#160;issuance&#160;has&#160;already&#160;</p> <p style="position:absolute;top:615px;left:229px;white-space:nowrap" class="ft07">totaled more&#160;than <money>$73&#160;billion</money>&#160;of&#160;investment-grade&#160;and more&#160;than <money>$21&#160;billion</money>&#160;for&#160;high-yield.&#160;(If&#160;a&#160;</p> <p style="position:absolute;top:633px;left:229px;white-space:nowrap" class="ft07">speculative-grade&#160;bond is&#160;offered by&#160;an issuer&#160;whose&#160;senior&#160;unsecured rating&#160;is&#160;investment-grade,&#160;the&#160;bond&#160;</p> <p style="position:absolute;top:651px;left:229px;white-space:nowrap" class="ft07">is&#160;still classified&#160;as&#160;high yield.)&#160;An&#160;atypically&#160;high percentage&#160;of&#160;January’s&#160;dollar-denominated investment-</p> <p style="position:absolute;top:669px;left:230px;white-space:nowrap" class="ft07">grade bonds&#160;have been&#160;issued&#160;by&#160;issuers&#160;based&#160;outside the <location value="LC/us" idsrc="xmltag.org" >U.S.</location>,&#160;where such bonds&#160;are referred&#160;to&#160;as&#160;Yankee&#160;</p> <p style="position:absolute;top:687px;left:230px;white-space:nowrap" class="ft07">bonds.&#160;</p> <p style="position:absolute;top:717px;left:230px;white-space:nowrap" class="ft07">Fourth-quarter&#160;2020’s 91&#160;credit&#160;rating&#160;upgrades of <location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;high-yield&#160;issuers&#160;included&#160;19&#160;that&#160;were&#160;partly&#160;</p> <p style="position:absolute;top:735px;left:229px;white-space:nowrap" class="ft07">ascribed to new loan programs&#160;and&#160;eight&#160;were&#160;attributed to&#160;recent&#160;corporate&#160;bond&#160;issuance.&#160;New&#160;</p> <p style="position:absolute;top:753px;left:229px;white-space:nowrap" class="ft07">borrowings&#160;can benefit&#160;credit&#160;quality&#160;via&#160;the&#160;refinancing&#160;of&#160;outstanding&#160;debt&#160;at&#160;longer&#160;maturities&#160;and&#160;lower&#160;</p> <p style="position:absolute;top:771px;left:229px;white-space:nowrap" class="ft07">interest&#160;rates or&#160;by&#160;increasing&#160;the&#160;buffer&#160;protecting&#160;outstanding&#160;debt.&#160;</p> <p style="position:absolute;top:801px;left:229px;white-space:nowrap" class="ft07">Moreover,&#160;of&#160;the fourth quarter’s&#160;69&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;high-yield credit&#160;rating&#160;reductions,&#160;new loan programs&#160;were&#160;cited&#160;</p> <p style="position:absolute;top:819px;left:229px;white-space:nowrap" class="ft07">in&#160;only&#160;six,&#160;while high-yield bond issuance&#160;was&#160;mentioned three&#160;times.&#160;</p> <p style="position:absolute;top:849px;left:230px;white-space:nowrap" class="ft07">Coincidentally,&#160;newly&#160;rated&#160;loan programs&#160;from&#160;high-yield companies&#160;rose&#160;from&#160;second-quarter&#160;2020’s <money>$69</money>&#160;</p> <p style="position:absolute;top:867px;left:230px;white-space:nowrap" class="ft07">billion and third-quarter&#160;2020’s&#160;<money>$93&#160;billion</money>&#160;to&#160;the <money>$123&#160;billion</money>&#160;of&#160;the fourth quarter.&#160;Nevertheless,&#160;the latter&#160;</p> <p style="position:absolute;top:885px;left:230px;white-space:nowrap" class="ft07">was&#160;3.2%&#160;under&#160;the&#160;<money>$127.5&#160;billion</money>&#160;of&#160;2019’s&#160;final&#160;quarter.&#160;But&#160;the&#160;latter&#160;was&#160;still&#160;an&#160;improvement&#160;over&#160;the&#160;</p> <p style="position:absolute;top:903px;left:230px;white-space:nowrap" class="ft07">year-over-year&#160;setbacks&#160;of&#160;7.6% for&#160;2020’s&#160;first&#160;quarter,&#160;43.4% for&#160;the&#160;second quarter,&#160;and&#160;31.9% for&#160;the&#160;</p> <p style="position:absolute;top:921px;left:230px;white-space:nowrap" class="ft07">third.&#160;</p> <p style="position:absolute;top:951px;left:230px;white-space:nowrap" class="ft07">The ease of&#160;access&#160;to&#160;attractively&#160;priced&#160;debt&#160;helps&#160;to&#160;explain&#160;why&#160;the COVID-19-driven lift-off by&#160;net&#160;</p> <p style="position:absolute;top:969px;left:230px;white-space:nowrap" class="ft07">downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;high-yield&#160;companies&#160;was&#160;relatively&#160;brief.&#160;Though the 368&#160;net&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;high-yield&#160;</p> <p style="position:absolute;top:987px;left:230px;white-space:nowrap" class="ft07">downgrades&#160;of&#160;2020’s&#160;second quarter&#160;constituted&#160;a record high,&#160;net&#160;high-yield downgrades&#160;quickly&#160;sank&#160;to&#160;</p> <p style="position:absolute;top:1005px;left:230px;white-space:nowrap" class="ft07">the 29&#160;of&#160;the third&#160;quarter&#160;and&#160;the&#160;-22&#160;of&#160;the final quarter.&#160;</p> <p style="position:absolute;top:1035px;left:230px;white-space:nowrap" class="ft07">After&#160;peaking&#160;at the&#160;164&#160;of&#160;the&#160;span-ended <chron>June&#160;2020,</chron>&#160;the&#160;moving&#160;yearlong&#160;per&#160;quarter&#160;average&#160;for&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;net&#160;</p> <p style="position:absolute;top:1053px;left:230px;white-space:nowrap" class="ft07">high-yield downgrades&#160;subsequently&#160;eased to calendar-year&#160;2020’s&#160;142.&#160;In turn,&#160;the&#160;moving&#160;yearlong&#160;</p> <p style="position:absolute;top:530px;left:835px;white-space:nowrap" class="ft05">6.0</p> <p style="position:absolute;top:508px;left:835px;white-space:nowrap" class="ft05">7.5</p> <p style="position:absolute;top:487px;left:835px;white-space:nowrap" class="ft05">9.0</p> <p style="position:absolute;top:465px;left:835px;white-space:nowrap" class="ft05">10.5</p> <p style="position:absolute;top:444px;left:835px;white-space:nowrap" class="ft05">12.0</p> <p style="position:absolute;top:422px;left:835px;white-space:nowrap" class="ft05">13.5</p> <p style="position:absolute;top:401px;left:835px;white-space:nowrap" class="ft05">15.0</p> <p style="position:absolute;top:380px;left:835px;white-space:nowrap" class="ft05">16.5</p> <p style="position:absolute;top:358px;left:835px;white-space:nowrap" class="ft05">18.0</p> <p style="position:absolute;top:337px;left:835px;white-space:nowrap" class="ft05">19.5</p> <p style="position:absolute;top:315px;left:835px;white-space:nowrap" class="ft05">21.0</p> <p style="position:absolute;top:294px;left:835px;white-space:nowrap" class="ft05">22.5</p> <p style="position:absolute;top:273px;left:835px;white-space:nowrap" class="ft05">24.0</p> <p style="position:absolute;top:543px;left:262px;white-space:nowrap" class="ft036">81Q1&#160;83Q3&#160;86Q1&#160;88Q3&#160;91Q1&#160;93Q3&#160;96Q1&#160;98Q3</p> <p style="position:absolute;top:543px;left:533px;white-space:nowrap" class="ft036">01Q1&#160;03Q3&#160;06Q1&#160;08Q3&#160;11Q1</p> <p style="position:absolute;top:543px;left:702px;white-space:nowrap" class="ft036">13Q3</p> <p style="position:absolute;top:543px;left:737px;white-space:nowrap" class="ft036">16Q1</p> <p style="position:absolute;top:543px;left:770px;white-space:nowrap" class="ft036">18Q3</p> <p style="position:absolute;top:543px;left:805px;white-space:nowrap" class="ft036">21Q1</p> <p style="position:absolute;top:530px;left:236px;white-space:nowrap" class="ft05">30%</p> <p style="position:absolute;top:504px;left:237px;white-space:nowrap" class="ft05">45%</p> <p style="position:absolute;top:479px;left:236px;white-space:nowrap" class="ft05">60%</p> <p style="position:absolute;top:453px;left:238px;white-space:nowrap" class="ft05">75%</p> <p style="position:absolute;top:428px;left:236px;white-space:nowrap" class="ft05">90%</p> <p style="position:absolute;top:402px;left:232px;white-space:nowrap" class="ft05">105%</p> <p style="position:absolute;top:377px;left:232px;white-space:nowrap" class="ft05">120%</p> <p style="position:absolute;top:352px;left:232px;white-space:nowrap" class="ft05">135%</p> <p style="position:absolute;top:326px;left:232px;white-space:nowrap" class="ft05">150%</p> <p style="position:absolute;top:301px;left:232px;white-space:nowrap" class="ft05">165%</p> <p style="position:absolute;top:275px;left:231px;white-space:nowrap" class="ft05">180%</p> <p style="position:absolute;top:231px;left:371px;white-space:nowrap" class="ft039">Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;Stock&#160;as&#160;%&#160;of&#160;GDP&#160;(L)<br/>Ratio&#160;of&#160;Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;Stock to&#160;Core&#160;After-Tax&#160;Profits&#160;(R)</p> <p style="position:absolute;top:174px;left:238px;white-space:nowrap" class="ft037"><b>Figure&#160;1:&#160;Market&#160;Value&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Common&#160;StockIs&#160;at&#160;Record-High&#160;vis-a-vis GDP,&#160;but&#160;Less&#160;than</b></p> <p style="position:absolute;top:190px;left:290px;white-space:nowrap" class="ft037"><b>Record-High&#160;vis-a-vis&#160;After-Tax&#160;Profits</b></p> <p style="position:absolute;top:207px;left:291px;white-space:nowrap" class="ft038"><i>sources:&#160;BEA,&#160;<org>Dow&#160;Jones</org>,&#160;Moody's&#160;Analytics</i></p> </div> <!-- Page 4 --> <a name="4"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft040{font-size:9px;line-height:18px;font-family:Times;color:#000000;} --> </style> <div id="page4-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022004.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:229px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:25px;left:686px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:39px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">4&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:58px;left:67px;white-space:nowrap" class="ft031">Credit&#160;Markets</p> <p style="position:absolute;top:58px;left:159px;white-space:nowrap" class="ft032">&#160;</p> <p style="position:absolute;top:58px;left:162px;white-space:nowrap" class="ft031">Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:87px;left:230px;white-space:nowrap" class="ft07">average for&#160;net&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;high-yield downgrades&#160;per&#160;quarter&#160;is&#160;likely&#160;to&#160;remain&#160;the 186&#160;of&#160;the span-ended June&#160;</p> <p style="position:absolute;top:105px;left:229px;white-space:nowrap" class="ft07">2009.&#160;</p> <p style="position:absolute;top:510px;left:860px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:536px;left:229px;white-space:nowrap" class="ft07">A&#160;diminished incidence&#160;of&#160;corporate&#160;debt&#160;defaults&#160;was&#160;implicit&#160;in the&#160;recent&#160;drop&#160;by&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:554px;left:229px;white-space:nowrap" class="ft07">average expected&#160;default&#160;frequency&#160;metric&#160;for&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>/Canadian&#160;high-yield&#160;issuers to&#160;January&#160;13’s 2.90%.&#160;The&#160;</p> <p style="position:absolute;top:572px;left:229px;white-space:nowrap" class="ft07">month-long&#160;average of&#160;the high-yield EDF&#160;last&#160;fell&#160;under&#160;3%&#160;when it&#160;sank&#160;from&#160;April&#160;2018’s&#160;3.43% to May&#160;</p> <p style="position:absolute;top:590px;left:229px;white-space:nowrap" class="ft07">2018’s 2.80%.&#160;</p> <p style="position:absolute;top:628px;left:230px;white-space:nowrap" class="ft035">COVID-19’s&#160;IG&#160;Ratings&#160;Downturn Has&#160;Been Milder&#160;than 2008-2009’s&#160;Credit&#160;Crunch&#160;</p> <p style="position:absolute;top:645px;left:230px;white-space:nowrap" class="ft07">Credit&#160;rating&#160;revisions&#160;for&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;investment-grade&#160;companies&#160;held&#160;up&#160;relatively&#160;well during&#160;the worst&#160;of&#160;the&#160;</p> <p style="position:absolute;top:663px;left:229px;white-space:nowrap" class="ft07">COVID-19&#160;recession.&#160;By&#160;contrast,&#160;investment-grade&#160;credit&#160;rating&#160;revisions&#160;fared worse&#160;during&#160;2015-2016’s&#160;</p> <p style="position:absolute;top:681px;left:230px;white-space:nowrap" class="ft07">profits&#160;recession and&#160;during&#160;2008-2009’s&#160;Great&#160;Recession.&#160;For&#160;example,&#160;the&#160;57&#160;downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;IG&#160;</p> <p style="position:absolute;top:699px;left:230px;white-space:nowrap" class="ft07">corporations from&#160;2020’s first&#160;half were&#160;considerably&#160;less than&#160;the&#160;74&#160;of 2016’s first&#160;half and&#160;the&#160;184&#160;of&#160;</p> <p style="position:absolute;top:717px;left:230px;white-space:nowrap" class="ft07">2009’s first&#160;half.&#160;</p> <p style="position:absolute;top:747px;left:230px;white-space:nowrap" class="ft07">By&#160;2020’s second&#160;half,&#160;the&#160;number&#160;of <location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;IG corporate&#160;upgrades rose&#160;from&#160;the&#160;10 of 2020’s first&#160;half to&#160;the&#160;</p> <p style="position:absolute;top:765px;left:230px;white-space:nowrap" class="ft07">16&#160;of&#160;the&#160;second half.&#160;</p> <p style="position:absolute;top:795px;left:230px;white-space:nowrap" class="ft07">As&#160;with&#160;high-yield,&#160;the&#160;COVID-19&#160;IG&#160;credit&#160;cycle slump&#160;lasted&#160;only&#160;two&#160;quarters.&#160;From&#160;the perspective of&#160;</p> <p style="position:absolute;top:813px;left:230px;white-space:nowrap" class="ft07">yield spreads,&#160;expected default&#160;frequencies,&#160;and credit&#160;rating&#160;revisions,&#160;the&#160;corporate&#160;credit&#160;cycle&#160;turned&#160;</p> <p style="position:absolute;top:831px;left:230px;white-space:nowrap" class="ft07">higher&#160;in&#160;2020’s&#160;third&#160;quarter.&#160;</p> <p style="position:absolute;top:861px;left:230px;white-space:nowrap" class="ft07">The&#160;net&#160;downgrades,&#160;or&#160;downgrades&#160;less&#160;upgrades,&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;investment-grade issuers&#160;peaked&#160;at&#160;the 26&#160;of&#160;</p> <p style="position:absolute;top:879px;left:230px;white-space:nowrap" class="ft07">2020’s&#160;second quarter.&#160;The&#160;previous&#160;notable&#160;peaks&#160;for&#160;net&#160;investment-grade&#160;downgrades&#160;were&#160;the&#160;33&#160;of&#160;</p> <p style="position:absolute;top:897px;left:230px;white-space:nowrap" class="ft07">2016’s first&#160;quarter&#160;and&#160;the&#160;83&#160;of 2009’s first&#160;quarter.&#160;</p> <p style="position:absolute;top:927px;left:230px;white-space:nowrap" class="ft07">During&#160;2008-2009’s&#160;recession,&#160;the&#160;credit&#160;rating&#160;downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;investment-grade&#160;corporations&#160;were&#160;</p> <p style="position:absolute;top:945px;left:230px;white-space:nowrap" class="ft07">dominated by&#160;financial&#160;institutions.&#160;More&#160;specifically,&#160;of&#160;the&#160;305&#160;investment-grade&#160;downgrades&#160;from&#160;the&#160;12&#160;</p> <p style="position:absolute;top:963px;left:230px;white-space:nowrap" class="ft07">months&#160;ended <chron>June&#160;2009,</chron>&#160;174,&#160;or&#160;57%,&#160;applied to&#160;financial&#160;institutions.&#160;Industrial&#160;companies&#160;supplied 88,&#160;or&#160;</p> <p style="position:absolute;top:981px;left:230px;white-space:nowrap" class="ft07">29%,&#160;of&#160;the&#160;span’s&#160;downgrades,&#160;while&#160;utilities&#160;supplied 43,&#160;or&#160;14%.&#160;</p> <p style="position:absolute;top:1011px;left:230px;white-space:nowrap" class="ft07">The&#160;Great&#160;Recession was&#160;deepened by&#160;the&#160;inadequate&#160;capitalization&#160;of&#160;financial&#160;institutions.&#160;The&#160;reduced&#160;</p> <p style="position:absolute;top:1029px;left:230px;white-space:nowrap" class="ft07">lending&#160;capacity&#160;of&#160;financial&#160;institutions&#160;increased the&#160;incidence&#160;of&#160;business&#160;and personal&#160;bankruptcies,&#160;</p> <p style="position:absolute;top:1047px;left:230px;white-space:nowrap" class="ft07">where the latter&#160;overlapped&#160;the Great&#160;Recession’s&#160;destabilizing surge in&#160;home mortgage foreclosures.&#160;</p> <p style="position:absolute;top:494px;left:832px;white-space:nowrap" class="ft05">100</p> <p style="position:absolute;top:507px;left:252px;white-space:nowrap" class="ft05">95Q4&#160;97Q3&#160;99Q2</p> <p style="position:absolute;top:507px;left:368px;white-space:nowrap" class="ft05">01Q1&#160;02Q4&#160;04Q3&#160;06Q2&#160;08Q1&#160;09Q4</p> <p style="position:absolute;top:507px;left:598px;white-space:nowrap" class="ft05">11Q3</p> <p style="position:absolute;top:507px;left:636px;white-space:nowrap" class="ft05">13Q2</p> <p style="position:absolute;top:507px;left:675px;white-space:nowrap" class="ft05">15Q1</p> <p style="position:absolute;top:507px;left:712px;white-space:nowrap" class="ft05">16Q4</p> <p style="position:absolute;top:507px;left:751px;white-space:nowrap" class="ft05">18Q3</p> <p style="position:absolute;top:507px;left:788px;white-space:nowrap" class="ft05">20Q2</p> <p style="position:absolute;top:494px;left:234px;white-space:nowrap" class="ft05">-60</p> <p style="position:absolute;top:477px;left:234px;white-space:nowrap" class="ft05">-30</p> <p style="position:absolute;top:460px;left:245px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:443px;left:238px;white-space:nowrap" class="ft05">30</p> <p style="position:absolute;top:426px;left:238px;white-space:nowrap" class="ft05">60</p> <p style="position:absolute;top:409px;left:238px;white-space:nowrap" class="ft05">90</p> <p style="position:absolute;top:392px;left:233px;white-space:nowrap" class="ft05">120</p> <p style="position:absolute;top:375px;left:233px;white-space:nowrap" class="ft05">150</p> <p style="position:absolute;top:358px;left:233px;white-space:nowrap" class="ft05">180</p> <p style="position:absolute;top:341px;left:233px;white-space:nowrap" class="ft05">210</p> <p style="position:absolute;top:324px;left:232px;white-space:nowrap" class="ft05">240</p> <p style="position:absolute;top:307px;left:233px;white-space:nowrap" class="ft05">270</p> <p style="position:absolute;top:290px;left:231px;white-space:nowrap" class="ft05">300</p> <p style="position:absolute;top:273px;left:232px;white-space:nowrap" class="ft05">330</p> <p style="position:absolute;top:256px;left:232px;white-space:nowrap" class="ft05">360</p> <p style="position:absolute;top:193px;left:356px;white-space:nowrap" class="ft040">Recessions are&#160;shaded<br/>Net&#160;High-Yield&#160;Downgrades by&#160;Quarter<br/>Net&#160;High-Yield&#160;Downgrades&#160;per&#160;Quarter:&#160;moving&#160;yearlong&#160;average</p> <p style="position:absolute;top:138px;left:238px;white-space:nowrap" class="ft037"><b>Figure&#160;2:&#160;Net&#160;High-Yield&#160;Downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;Companies&#160;Plunged&#160;from&#160;Q2-2020's&#160;Record-High&#160;368</b></p> <p style="position:absolute;top:154px;left:290px;white-space:nowrap" class="ft037"><b>to&#160;Q3-2020's&#160;29 and&#160;-22&#160;of&#160;Q4-2020</b></p> <p style="position:absolute;top:171px;left:290px;white-space:nowrap" class="ft038"><i>sources:&#160;Moody's&#160;Investors&#160;Service,&#160;Moody's&#160;Analytics</i></p> </div> <!-- Page 5 --> <a name="5"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page5-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022005.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:229px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:25px;left:686px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:39px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">5&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:58px;left:67px;white-space:nowrap" class="ft031">Credit&#160;Markets</p> <p style="position:absolute;top:58px;left:159px;white-space:nowrap" class="ft032">&#160;</p> <p style="position:absolute;top:58px;left:162px;white-space:nowrap" class="ft031">Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:87px;left:230px;white-space:nowrap" class="ft07">Though&#160;the&#160;COVID-19&#160;recession triggered a sharp&#160;increase&#160;in delinquent&#160;home mortgages,&#160;ample systemic&#160;</p> <p style="position:absolute;top:105px;left:230px;white-space:nowrap" class="ft07">liquidity&#160;has&#160;lessened the&#160;harmful&#160;impact&#160;of&#160;delinquent&#160;mortgages&#160;on overall&#160;business&#160;activity.&#160;</p> <p style="position:absolute;top:135px;left:230px;white-space:nowrap" class="ft07">Unlike the Great&#160;Recession,&#160;the COVID-19&#160;recession did&#160;not&#160;incur&#160;home-price deflation.&#160;Much to&#160;the&#160;</p> <p style="position:absolute;top:153px;left:230px;white-space:nowrap" class="ft07">contrary,&#160;an ultra-accommodative&#160;monetary&#160;policy&#160;helps&#160;to explain why&#160;Case-Shiller’s&#160;annual&#160;rate&#160;of&#160;home-</p> <p style="position:absolute;top:171px;left:230px;white-space:nowrap" class="ft07">price&#160;inflation climbed from&#160;October&#160;2019’s&#160;2.2% to October&#160;2020’s&#160;7.9%.&#160;In contrast,&#160;the&#160;Great&#160;Recession&#160;</p> <p style="position:absolute;top:189px;left:230px;white-space:nowrap" class="ft07">saw the&#160;Case-Shiller&#160;home-price&#160;index&#160;plunge&#160;by&#160;a cumulative&#160;32.6% from&#160;a <chron>July&#160;2006</chron>&#160;high&#160;to an April&#160;</p> <p style="position:absolute;top:207px;left:229px;white-space:nowrap" class="ft07">2009&#160;low.&#160;</p> <p style="position:absolute;top:237px;left:229px;white-space:nowrap" class="ft07">Of first-half&#160;2020’s&#160;57&#160;downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;IG&#160;companies,&#160;eight,&#160;or&#160;14%,&#160;applied to financial&#160;institutions;&#160;41,&#160;</p> <p style="position:absolute;top:255px;left:229px;white-space:nowrap" class="ft07">or&#160;73%,&#160;affected industrial&#160;companies;&#160;and eight,&#160;or&#160;14%,&#160;were&#160;supplied by&#160;utilities.&#160;</p> <p style="position:absolute;top:285px;left:229px;white-space:nowrap" class="ft07">In&#160;2020’s final&#160;quarter,&#160;the&#160;seven downgrades&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;IG&#160;companies&#160;applied to&#160;one&#160;financial&#160;institution,&#160;two&#160;</p> <p style="position:absolute;top:303px;left:229px;white-space:nowrap" class="ft07">utilities,&#160;and four&#160;industrials,&#160;while&#160;the&#160;10&#160;IG&#160;upgrades&#160;included three&#160;financials,&#160;one&#160;utility&#160;and six&#160;</p> <p style="position:absolute;top:321px;left:229px;white-space:nowrap" class="ft07">industrials.&#160;</p> <p style="position:absolute;top:720px;left:849px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:755px;left:230px;white-space:nowrap" class="ft035">Lowest&#160;Ratio&#160;of&#160;Net&#160;Stock&#160;Buybacks&#160;to&#160;Cash&#160;since&#160;2010&#160;</p> <p style="position:absolute;top:772px;left:230px;white-space:nowrap" class="ft07">Despite&#160;a&#160;deep drop by&#160;the&#160;seasonally&#160;adjusted&#160;and&#160;annualized net&#160;equity&#160;buybacks&#160;of&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;nonfinancial&#160;</p> <p style="position:absolute;top:789px;left:230px;white-space:nowrap" class="ft07">corporations&#160;from&#160;the&#160;<money>$495&#160;billion</money> of&#160;2019’s&#160;final&#160;quarter&#160;to the&#160;<money>$27&#160;billion</money> of&#160;2020’s&#160;third quarter,&#160;<location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;</p> <p style="position:absolute;top:807px;left:230px;white-space:nowrap" class="ft07">equities&#160;rallied&#160;mightily&#160;after&#160;bottoming&#160;in late&#160;March&#160;2020.&#160;</p> <p style="position:absolute;top:838px;left:230px;white-space:nowrap" class="ft07">Meanwhile,&#160;2020&#160;was&#160;also home&#160;to a massive&#160;accumulation&#160;of&#160;cash.&#160;For&#160;example,&#160;the&#160;liquid financial&#160;assets&#160;</p> <p style="position:absolute;top:856px;left:230px;white-space:nowrap" class="ft07">of&#160;nonfinancial&#160;corporations&#160;rose&#160;by&#160;37% yearly&#160;to third-quarter&#160;2020’s record-high <money>$3.5 trillion</money>.&#160;Because of&#160;</p> <p style="position:absolute;top:874px;left:230px;white-space:nowrap" class="ft07">the explosive&#160;growth&#160;of&#160;corporate&#160;cash,&#160;third-quarter&#160;2020’s&#160;net&#160;nonfinancial-corporate&#160;debt&#160;fell&#160;by&#160;1%&#160;</p> <p style="position:absolute;top:892px;left:230px;white-space:nowrap" class="ft07">annually&#160;to <money>$7.4&#160;trillion</money>,&#160;which&#160;was&#160;materially&#160;under&#160;first-quarter 2019’s&#160;record-high <money>$7.7&#160;trillion</money>.&#160;Basically,&#160;a&#160;</p> <p style="position:absolute;top:910px;left:230px;white-space:nowrap" class="ft07">good deal&#160;of&#160;2020’s&#160;corporate&#160;borrowing&#160;was&#160;held&#160;as&#160;cash in&#160;order&#160;to&#160;better&#160;meet&#160;whatever&#160;exigencies&#160;</p> <p style="position:absolute;top:928px;left:230px;white-space:nowrap" class="ft07">might&#160;arise&#160;from&#160;an&#160;unprecedented pandemic-driven recession.&#160;</p> <p style="position:absolute;top:958px;left:230px;white-space:nowrap" class="ft07">Despite&#160;how&#160;net&#160;equity&#160;buybacks sank&#160;from&#160;first-quarter 2019’s&#160;29%&#160;to&#160;third-quarter&#160;2020’s 8%&#160;of&#160;</p> <p style="position:absolute;top:976px;left:230px;white-space:nowrap" class="ft07">corporate&#160;cash,&#160;the&#160;market&#160;value&#160;of&#160;nonfinancial-corporate&#160;equity&#160;still&#160;advanced by&#160;an&#160;accompanying&#160;</p> <p style="position:absolute;top:994px;left:230px;white-space:nowrap" class="ft07">21.5%.&#160;Compared with&#160;its&#160;18%&#160;median&#160;ratio&#160;of&#160;the&#160;25&#160;years&#160;ended 2019,&#160;the&#160;now&#160;8%&#160;ratio&#160;of&#160;net&#160;stock&#160;</p> <p style="position:absolute;top:1012px;left:230px;white-space:nowrap" class="ft07">buybacks&#160;to cash&#160;suggest&#160;companies&#160;have&#160;more&#160;than enough&#160;financial&#160;resources&#160;with&#160;which&#160;to help&#160;stabilize&#160;</p> <p style="position:absolute;top:1030px;left:230px;white-space:nowrap" class="ft07">the equity&#160;market&#160;via&#160;buybacks&#160;should&#160;the need&#160;arise.&#160;</p> <p style="position:absolute;top:703px;left:820px;white-space:nowrap" class="ft05">100</p> <p style="position:absolute;top:717px;left:250px;white-space:nowrap" class="ft09">95Q4</p> <p style="position:absolute;top:717px;left:288px;white-space:nowrap" class="ft09">97Q3</p> <p style="position:absolute;top:717px;left:326px;white-space:nowrap" class="ft09">99Q2</p> <p style="position:absolute;top:717px;left:364px;white-space:nowrap" class="ft09">01Q1</p> <p style="position:absolute;top:717px;left:401px;white-space:nowrap" class="ft09">02Q4</p> <p style="position:absolute;top:717px;left:438px;white-space:nowrap" class="ft09">04Q3</p> <p style="position:absolute;top:717px;left:476px;white-space:nowrap" class="ft09">06Q2</p> <p style="position:absolute;top:717px;left:514px;white-space:nowrap" class="ft09">08Q1</p> <p style="position:absolute;top:717px;left:551px;white-space:nowrap" class="ft09">09Q4</p> <p style="position:absolute;top:717px;left:590px;white-space:nowrap" class="ft09">11Q3</p> <p style="position:absolute;top:717px;left:628px;white-space:nowrap" class="ft09">13Q2</p> <p style="position:absolute;top:717px;left:666px;white-space:nowrap" class="ft09">15Q1</p> <p style="position:absolute;top:717px;left:703px;white-space:nowrap" class="ft09">16Q4</p> <p style="position:absolute;top:717px;left:740px;white-space:nowrap" class="ft09">18Q3</p> <p style="position:absolute;top:717px;left:778px;white-space:nowrap" class="ft09">20Q2</p> <p style="position:absolute;top:703px;left:231px;white-space:nowrap" class="ft05">-20</p> <p style="position:absolute;top:680px;left:232px;white-space:nowrap" class="ft05">-10</p> <p style="position:absolute;top:657px;left:242px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:633px;left:237px;white-space:nowrap" class="ft05">10</p> <p style="position:absolute;top:610px;left:236px;white-space:nowrap" class="ft05">20</p> <p style="position:absolute;top:587px;left:235px;white-space:nowrap" class="ft05">30</p> <p style="position:absolute;top:564px;left:235px;white-space:nowrap" class="ft05">40</p> <p style="position:absolute;top:540px;left:236px;white-space:nowrap" class="ft05">50</p> <p style="position:absolute;top:517px;left:235px;white-space:nowrap" class="ft05">60</p> <p style="position:absolute;top:494px;left:236px;white-space:nowrap" class="ft05">70</p> <p style="position:absolute;top:471px;left:235px;white-space:nowrap" class="ft05">80</p> <p style="position:absolute;top:421px;left:390px;white-space:nowrap" class="ft039">Recessions are&#160;shaded<br/>Net Investment-Grade&#160;Downgrades&#160;by&#160;Quarter<br/>Net&#160;Investment-Grade&#160;Downgrades&#160;per Quarter:&#160;moving&#160;yearlong&#160;average</p> <p style="position:absolute;top:354px;left:238px;white-space:nowrap" class="ft037"><b>Figure&#160;3:&#160;COVID-19&#160;Driven&#160;Upturn&#160;by&#160;Net&#160;Investment-Grade&#160;Downgrades&#160;Is&#160;Mild&#160;Compared&#160;</b></p> <p style="position:absolute;top:370px;left:289px;white-space:nowrap" class="ft037"><b>to&#160;Prior&#160;Recessions</b></p> <p style="position:absolute;top:387px;left:289px;white-space:nowrap" class="ft038"><i><location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;issuers&#160;ex&#160;utilities</i></p> <p style="position:absolute;top:403px;left:289px;white-space:nowrap" class="ft038"><i>sources:&#160;Moody's&#160;Investors&#160;Service,&#160;Moody's&#160;Analytics</i></p> </div> <!-- Page 6 --> <a name="6"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft041{font-size:9px;line-height:19px;font-family:Times;color:#000000;} --> </style> <div id="page6-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022006.png" alt="background image"/> <p style="position:absolute;top:31px;left:257px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:411px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1140px;left:229px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:25px;left:686px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:39px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">6&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:58px;left:67px;white-space:nowrap" class="ft031">Credit&#160;Markets</p> <p style="position:absolute;top:58px;left:159px;white-space:nowrap" class="ft032">&#160;</p> <p style="position:absolute;top:58px;left:162px;white-space:nowrap" class="ft031">Review&#160;and&#160;Outlook&#160;</p> <p style="position:absolute;top:459px;left:853px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:485px;left:230px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:515px;left:230px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:545px;left:230px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:575px;left:230px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:605px;left:230px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:444px;left:822px;white-space:nowrap" class="ft05"><money>$1.5</money></p> <p style="position:absolute;top:421px;left:822px;white-space:nowrap" class="ft05"><money>$4.5</money></p> <p style="position:absolute;top:399px;left:822px;white-space:nowrap" class="ft05"><money>$7.5</money></p> <p style="position:absolute;top:377px;left:822px;white-space:nowrap" class="ft05"><money>$10.5</money></p> <p style="position:absolute;top:354px;left:822px;white-space:nowrap" class="ft05"><money>$13.5</money></p> <p style="position:absolute;top:332px;left:822px;white-space:nowrap" class="ft05"><money>$16.5</money></p> <p style="position:absolute;top:309px;left:822px;white-space:nowrap" class="ft05"><money>$19.5</money></p> <p style="position:absolute;top:287px;left:822px;white-space:nowrap" class="ft05"><money>$22.5</money></p> <p style="position:absolute;top:265px;left:822px;white-space:nowrap" class="ft05"><money>$25.5</money></p> <p style="position:absolute;top:242px;left:822px;white-space:nowrap" class="ft05"><money>$28.5</money></p> <p style="position:absolute;top:220px;left:822px;white-space:nowrap" class="ft05"><money>$31.5</money></p> <p style="position:absolute;top:198px;left:822px;white-space:nowrap" class="ft05"><money>$34.5</money></p> <p style="position:absolute;top:175px;left:822px;white-space:nowrap" class="ft05"><money>$37.5</money></p> <p style="position:absolute;top:458px;left:258px;white-space:nowrap" class="ft036">89Q4</p> <p style="position:absolute;top:458px;left:306px;white-space:nowrap" class="ft036">92Q3</p> <p style="position:absolute;top:458px;left:353px;white-space:nowrap" class="ft036">95Q2</p> <p style="position:absolute;top:458px;left:401px;white-space:nowrap" class="ft036">98Q1</p> <p style="position:absolute;top:458px;left:447px;white-space:nowrap" class="ft036">00Q4</p> <p style="position:absolute;top:458px;left:495px;white-space:nowrap" class="ft036">03Q3</p> <p style="position:absolute;top:458px;left:543px;white-space:nowrap" class="ft036">06Q2</p> <p style="position:absolute;top:458px;left:590px;white-space:nowrap" class="ft036">09Q1</p> <p style="position:absolute;top:458px;left:638px;white-space:nowrap" class="ft036">11Q4</p> <p style="position:absolute;top:458px;left:685px;white-space:nowrap" class="ft036">14Q3</p> <p style="position:absolute;top:458px;left:733px;white-space:nowrap" class="ft036">17Q2</p> <p style="position:absolute;top:458px;left:780px;white-space:nowrap" class="ft036">20Q1</p> <p style="position:absolute;top:444px;left:231px;white-space:nowrap" class="ft05">-12%</p> <p style="position:absolute;top:418px;left:236px;white-space:nowrap" class="ft05">-6%</p> <p style="position:absolute;top:393px;left:240px;white-space:nowrap" class="ft05">0%</p> <p style="position:absolute;top:367px;left:240px;white-space:nowrap" class="ft05">6%</p> <p style="position:absolute;top:342px;left:236px;white-space:nowrap" class="ft05">12%</p> <p style="position:absolute;top:316px;left:235px;white-space:nowrap" class="ft05">18%</p> <p style="position:absolute;top:291px;left:234px;white-space:nowrap" class="ft05">24%</p> <p style="position:absolute;top:265px;left:234px;white-space:nowrap" class="ft05">30%</p> <p style="position:absolute;top:240px;left:234px;white-space:nowrap" class="ft05">36%</p> <p style="position:absolute;top:214px;left:234px;white-space:nowrap" class="ft05">42%</p> <p style="position:absolute;top:189px;left:233px;white-space:nowrap" class="ft05">48%</p> <p style="position:absolute;top:143px;left:392px;white-space:nowrap" class="ft041">Net&#160;Stock&#160;Buybacks %&#160;Liquid&#160;Financial&#160;Assets:&#160;mov.&#160;4-qtr&#160;ratio&#160;(L)<br/>Market&#160;Value&#160;of Nonfinancial-Corporate&#160;Equity:&#160;$&#160;trillions (R)</p> <p style="position:absolute;top:90px;left:238px;white-space:nowrap" class="ft037"><b>Figure&#160;4:&#160;Declining&#160;Ratio&#160;of&#160;Net&#160;Stock&#160;Buybacks&#160;to&#160;Cash&#160;Lessens&#160;the&#160;Downside&#160;Risk&#160;for&#160;Equities&#160;</b></p> <p style="position:absolute;top:106px;left:290px;white-space:nowrap" class="ft038"><i><location value="LC/us" idsrc="xmltag.org" >U.S.</location>&#160;nonfinancial&#160;corporations</i></p> <p style="position:absolute;top:123px;left:290px;white-space:nowrap" class="ft038"><i>sources:&#160;<org>Federal&#160;Reserve</org>,&#160;Moody's&#160;Analytics</i></p> </div> <!-- Page 7 --> <a name="7"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft042{font-size:19px;font-family:Times;color:#0078bd;} .ft043{font-size:13px;line-height:19px;font-family:Times;color:#000000;} --> </style> <div id="page7-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022007.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">7&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:88px;left:235px;white-space:nowrap" class="ft016">The&#160;Week&#160;Ahead&#160;–&#160;U.S.,&#160;Europe,&#160;Asia-Pacific&#160;</p> <p style="position:absolute;top:112px;left:235px;white-space:nowrap" class="ft016">&#160;</p> <p style="position:absolute;top:136px;left:235px;white-space:nowrap" class="ft016">THE&#160;U.S.&#160;</p> <p style="position:absolute;top:161px;left:235px;white-space:nowrap" class="ft07">By&#160;Mark&#160;Zandi,&#160;Chief&#160;Economist,&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:180px;left:235px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:198px;left:235px;white-space:nowrap" class="ft042">Fiscal&#160;Support&#160;Will&#160;Quickly&#160;Boost&#160;the&#160;Economy&#160;</p> <p style="position:absolute;top:242px;left:235px;white-space:nowrap" class="ft07">The&#160;surprising&#160;outcome&#160;of&#160;the&#160;Georgia Senate&#160;races&#160;and&#160;resulting&#160;Democratic&#160;control&#160;of&#160;the&#160;federal&#160;</p> <p style="position:absolute;top:261px;left:235px;white-space:nowrap" class="ft07">government&#160;have&#160;a significant&#160;bearing&#160;on&#160;prospects&#160;for&#160;fiscal&#160;policy&#160;and&#160;the&#160;economy.&#160;We&#160;now&#160;</p> <p style="position:absolute;top:280px;left:235px;white-space:nowrap" class="ft07">expect&#160;the&#160;new Biden&#160;administration&#160;and&#160;Congress&#160;to approve&#160;what&#160;ultimately&#160;will&#160;be&#160;close&#160;to <money>$1.9</money>&#160;</p> <p style="position:absolute;top:299px;left:235px;white-space:nowrap" class="ft07">trillion&#160;in&#160;additional&#160;fiscal&#160;support&#160;to the&#160;economy.&#160;This&#160;would&#160;bring&#160;total&#160;support&#160;since&#160;the&#160;</p> <p style="position:absolute;top:318px;left:235px;white-space:nowrap" class="ft07">pandemic&#160;hit&#160;to <money>$5.2&#160;trillion</money>,&#160;equal&#160;to an&#160;astounding&#160;25% of&#160;GDP—approximately three&#160;times&#160;the&#160;</p> <p style="position:absolute;top:336px;left:235px;white-space:nowrap" class="ft07">fiscal&#160;support&#160;during&#160;the&#160;financial&#160;crisis,&#160;and&#160;substantially&#160;more&#160;than&#160;provided&#160;by&#160;any&#160;other&#160;country&#160;</p> <p style="position:absolute;top:355px;left:235px;white-space:nowrap" class="ft07">in&#160;the&#160;world.&#160;With&#160;this&#160;additional&#160;boost,&#160;real&#160;GDP&#160;should&#160;be&#160;robust&#160;at&#160;just&#160;over&#160;5% this&#160;year&#160;and&#160;the&#160;</p> <p style="position:absolute;top:374px;left:235px;white-space:nowrap" class="ft07">same&#160;next,&#160;bringing&#160;the&#160;economy&#160;back&#160;to full&#160;employment&#160;by&#160;early&#160;2023.&#160;That&#160;is&#160;nearly&#160;a full&#160;year&#160;</p> <p style="position:absolute;top:393px;left:235px;white-space:nowrap" class="ft043">sooner&#160;than&#160;we&#160;had&#160;anticipated&#160;when&#160;assuming&#160;the&#160;Republicans&#160;would&#160;maintain&#160;control&#160;of&#160;the&#160;<br/>Senate&#160;and&#160;stymie&#160;the&#160;Biden&#160;administration’s&#160;efforts&#160;for&#160;additional&#160;fiscal&#160;support.&#160;</p> <p style="position:absolute;top:599px;left:752px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:786px;left:235px;white-space:nowrap" class="ft07">Fiscal&#160;support&#160;from&#160;the&#160;new Biden&#160;administration&#160;and&#160;Congress&#160;is&#160;expected&#160;to include&#160;an&#160;additional&#160;</p> <p style="position:absolute;top:805px;left:235px;white-space:nowrap" class="ft07"><money>$750&#160;billion</money>&#160;to help&#160;the&#160;economy&#160;through&#160;to the&#160;end&#160;of&#160;the&#160;pandemic.&#160;This&#160;will&#160;be&#160;entirely&#160;deficit-</p> <p style="position:absolute;top:824px;left:235px;white-space:nowrap" class="ft07">financed,&#160;passed&#160;into law in&#160;February,&#160;and&#160;largely&#160;take&#160;effect&#160;in&#160;March.&#160;It&#160;will&#160;kick&#160;in&#160;as&#160;the&#160;funds&#160;</p> <p style="position:absolute;top:843px;left:235px;white-space:nowrap" class="ft07">from&#160;the <money>$900&#160;billion</money>&#160;relief&#160;package&#160;the&#160;Trump&#160;administration&#160;and&#160;Congress&#160;agreed&#160;to in&#160;December&#160;</p> <p style="position:absolute;top:862px;left:235px;white-space:nowrap" class="ft07">are&#160;spent&#160;down.&#160;Although&#160;vaccinations&#160;should&#160;soon&#160;pick&#160;up&#160;substantially,&#160;the&#160;pandemic&#160;will&#160;</p> <p style="position:absolute;top:880px;left:235px;white-space:nowrap" class="ft07">continue&#160;to rage&#160;through&#160;much&#160;of&#160;the&#160;spring.&#160;Infections,&#160;hospitalizations&#160;and&#160;deaths&#160;continue&#160;to&#160;</p> <p style="position:absolute;top:899px;left:235px;white-space:nowrap" class="ft07">mount,&#160;and the&#160;full&#160;brunt&#160;of&#160;the&#160;new,&#160;more&#160;contagious&#160;strain&#160;of&#160;the&#160;virus&#160;has&#160;yet&#160;to fully&#160;hit.&#160;Judging&#160;</p> <p style="position:absolute;top:918px;left:235px;white-space:nowrap" class="ft07">by&#160;December&#160;job&#160;losses,&#160;particularly&#160;in&#160;leisure&#160;and&#160;hospitality,&#160;the&#160;pandemic&#160;continues&#160;to&#160;do serious&#160;</p> <p style="position:absolute;top:937px;left:235px;white-space:nowrap" class="ft07">economic&#160;damage.&#160;A&#160;double-dip&#160;recession&#160;is&#160;unlikely,&#160;thanks&#160;to what&#160;lawmakers&#160;have&#160;done&#160;so far,&#160;</p> <p style="position:absolute;top:956px;left:235px;white-space:nowrap" class="ft07">but&#160;the&#160;economy&#160;will&#160;continue&#160;to struggle&#160;until&#160;at&#160;least&#160;a majority&#160;of&#160;Americans&#160;are&#160;vaccinated,&#160;</p> <p style="position:absolute;top:974px;left:235px;white-space:nowrap" class="ft07">which&#160;we&#160;don’t&#160;anticipate&#160;until&#160;midyear.&#160;The&#160;<money>$750&#160;billion</money>&#160;relief&#160;package&#160;will&#160;look&#160;familiar,&#160;including&#160;</p> <p style="position:absolute;top:993px;left:235px;white-space:nowrap" class="ft07">a plus-up&#160;to <money>$2,000</money>&#160;per&#160;person&#160;on&#160;the&#160;<money>$600</money>&#160;stimulus&#160;checks&#160;recently&#160;sent&#160;to&#160;lower-&#160;and middle-</p> <p style="position:absolute;top:1012px;left:235px;white-space:nowrap" class="ft07">income&#160;households.&#160;Though&#160;there&#160;is&#160;substantial&#160;political&#160;momentum&#160;for&#160;this&#160;item,&#160;it&#160;isn’t&#160;the&#160;most&#160;</p> <p style="position:absolute;top:1031px;left:235px;white-space:nowrap" class="ft07">effective&#160;type&#160;of&#160;support.&#160;Much&#160;of&#160;the&#160;money&#160;goes&#160;to households&#160;that&#160;don’t&#160;need&#160;the&#160;funds&#160;and will&#160;</p> <p style="position:absolute;top:1050px;left:235px;white-space:nowrap" class="ft07">save&#160;a lot&#160;of&#160;it,&#160;at&#160;least&#160;for&#160;a while.&#160;The&#160;relief&#160;package&#160;will&#160;also include&#160;more&#160;funds&#160;for&#160;</p> <p style="position:absolute;top:1069px;left:235px;white-space:nowrap" class="ft07">unemployment&#160;insurance,&#160;assistance&#160;for&#160;back&#160;rent&#160;owed,&#160;small&#160;businesses,&#160;and&#160;vaccine&#160;distribution.&#160;</p> </div> <!-- Page 8 --> <a name="8"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft044{font-size:13px;font-family:Times;color:#0000ff;} --> </style> <div id="page8-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022008.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">8&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:159px;left:864px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:269px;left:235px;white-space:nowrap" class="ft07">We&#160;also expect&#160;an&#160;additional&#160;<money>$1.15&#160;trillion</money>&#160;in&#160;net&#160;fiscal&#160;support&#160;to be&#160;signed&#160;into law later&#160;this&#160;year&#160;</p> <p style="position:absolute;top:288px;left:235px;white-space:nowrap" class="ft07">with&#160;government&#160;spending and&#160;tax&#160;increases&#160;in&#160;the&#160;spirit&#160;of&#160;the&#160;“Build&#160;Back&#160;Better” policy&#160;agenda&#160;</p> <p style="position:absolute;top:307px;left:235px;white-space:nowrap" class="ft07">that&#160;Biden&#160;proposed&#160;during&#160;the&#160;campaign.&#160;This&#160;support&#160;will&#160;include&#160;a substantive&#160;infrastructure&#160;plan,&#160;</p> <p style="position:absolute;top:325px;left:235px;white-space:nowrap" class="ft07">with&#160;additional&#160;spending&#160;on&#160;transportation,&#160;hospitals,&#160;schools,&#160;higher&#160;education&#160;facilities,&#160;affordable&#160;</p> <p style="position:absolute;top:344px;left:235px;white-space:nowrap" class="ft07">housing,&#160;and&#160;broadband.&#160;It&#160;will&#160;also include&#160;more&#160;spending&#160;on&#160;a range&#160;of&#160;social&#160;programs,&#160;including&#160;</p> <p style="position:absolute;top:363px;left:235px;white-space:nowrap" class="ft07">education,&#160;healthcare,&#160;housing,&#160;and&#160;child&#160;and&#160;elder&#160;care.&#160;On&#160;taxes,&#160;we&#160;expect&#160;an&#160;increase&#160;in&#160;the&#160;top&#160;</p> <p style="position:absolute;top:382px;left:235px;white-space:nowrap" class="ft07">marginal&#160;rate&#160;on&#160;corporations&#160;from&#160;21% to 28%,&#160;rolling&#160;back&#160;half&#160;of&#160;the&#160;tax&#160;cut&#160;provided&#160;by&#160;Trump’s&#160;</p> <p style="position:absolute;top:401px;left:235px;white-space:nowrap" class="ft07">late-2017&#160;Tax&#160;Cut&#160;and&#160;Jobs&#160;Act.&#160;High-income&#160;and&#160;wealthy&#160;households&#160;will&#160;also pay&#160;more&#160;taxes&#160;on&#160;</p> <p style="position:absolute;top:419px;left:235px;white-space:nowrap" class="ft07">capital&#160;gains,&#160;dividends&#160;and&#160;big&#160;estates.&#160;We&#160;also expect&#160;some&#160;tax&#160;cuts,&#160;including&#160;on&#160;new&#160;</p> <p style="position:absolute;top:438px;left:235px;white-space:nowrap" class="ft07">manufacturing&#160;investment&#160;in&#160;the&#160;U.S.,&#160;an increase&#160;in the&#160;child tax&#160;credit,&#160;and a&#160;repeal&#160;of&#160;the&#160;</p> <p style="position:absolute;top:457px;left:235px;white-space:nowrap" class="ft07"><money>$10,000</money>&#160;cap&#160;on&#160;the&#160;state&#160;and&#160;local&#160;tax&#160;deduction&#160;implemented&#160;with&#160;the&#160;Trump&#160;tax&#160;cuts.&#160;</p> <p style="position:absolute;top:605px;left:864px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:753px;left:235px;white-space:nowrap" class="ft07">The&#160;new Biden&#160;administration&#160;and&#160;Congress&#160;will&#160;almost&#160;surely&#160;need&#160;to use&#160;the&#160;budget&#160;reconciliation&#160;</p> <p style="position:absolute;top:772px;left:235px;white-space:nowrap" class="ft07">process&#160;to get&#160;much&#160;of&#160;this&#160;fiscal&#160;policy&#160;into law.&#160;Reconciliation&#160;allows&#160;the&#160;Senate&#160;to pass&#160;legislation&#160;</p> <p style="position:absolute;top:791px;left:235px;white-space:nowrap" class="ft07">with&#160;a simple&#160;majority&#160;vote&#160;instead&#160;of&#160;the&#160;60&#160;votes&#160;needed&#160;to avoid&#160;a filibuster&#160;on&#160;everything&#160;else,&#160;</p> <p style="position:absolute;top:809px;left:235px;white-space:nowrap" class="ft07">save&#160;for&#160;judicial&#160;appointments.&#160;Senate&#160;Democrats&#160;can&#160;now muster&#160;a majority&#160;if&#160;they&#160;remain&#160;united.&#160;</p> <p style="position:absolute;top:828px;left:235px;white-space:nowrap" class="ft07">There&#160;are&#160;constraints&#160;on&#160;the&#160;reconciliation&#160;process,&#160;such&#160;that&#160;whatever&#160;spending&#160;and&#160;tax&#160;policy&#160;is&#160;</p> <p style="position:absolute;top:847px;left:235px;white-space:nowrap" class="ft07">legislated must&#160;be&#160;budget&#160;neutral&#160;after&#160;the&#160;budget&#160;horizon,&#160;which&#160;is&#160;typically&#160;10&#160;years.&#160;However,&#160;</p> <p style="position:absolute;top:866px;left:235px;white-space:nowrap" class="ft07">needless&#160;to&#160;say,&#160;given&#160;the&#160;deep political&#160;divisions&#160;in&#160;the&#160;country,&#160;the&#160;complicated&#160;politics&#160;created&#160;by&#160;</p> <p style="position:absolute;top:885px;left:235px;white-space:nowrap" class="ft07">the&#160;Democrats’&#160;razor-thin&#160;majority&#160;in&#160;the&#160;Senate,&#160;and&#160;the&#160;arcane&#160;budget&#160;rules,&#160;there&#160;is&#160;substantial&#160;</p> <p style="position:absolute;top:903px;left:235px;white-space:nowrap" class="ft043">uncertainty&#160;over&#160;how all&#160;of&#160;this&#160;will&#160;play&#160;out,&#160;including&#160;the&#160;ultimate&#160;amount&#160;of&#160;fiscal&#160;support&#160;<br/>lawmakers&#160;agree&#160;to and&#160;just&#160;when&#160;they&#160;will&#160;agree&#160;to it.&#160;</p> <p style="position:absolute;top:961px;left:235px;white-space:nowrap" class="ft07">Another&#160;important&#160;outcome&#160;of&#160;the&#160;Democrats’&#160;control&#160;of&#160;government&#160;is&#160;that&#160;it&#160;should&#160;forestall&#160;the&#160;</p> <p style="position:absolute;top:979px;left:235px;white-space:nowrap" class="ft07">worst&#160;of&#160;the&#160;budget&#160;wars&#160;that&#160;have&#160;plagued&#160;the&#160;federal&#160;government&#160;over&#160;the&#160;past&#160;decade.&#160;The&#160;</p> <p style="position:absolute;top:998px;left:235px;white-space:nowrap" class="ft07">Democrats&#160;will&#160;be&#160;able&#160;to pass&#160;their&#160;own&#160;budgets,&#160;as&#160;budgets&#160;are&#160;not&#160;subject&#160;to the&#160;filibuster,&#160;thus&#160;</p> <p style="position:absolute;top:1017px;left:235px;white-space:nowrap" class="ft07">avoiding&#160;the&#160;persistent&#160;threat&#160;of&#160;government&#160;shutdowns&#160;and need to&#160;pass&#160;stopgap&#160;continuing&#160;</p> <p style="position:absolute;top:1036px;left:235px;white-space:nowrap" class="ft07">resolutions—an&#160;extension&#160;of&#160;the&#160;prior&#160;year’s&#160;budget.&#160;The&#160;Biden&#160;administration&#160;will&#160;work&#160;closely&#160;with&#160;</p> <p style="position:absolute;top:1054px;left:235px;white-space:nowrap" class="ft043">appropriators&#160;in&#160;both&#160;chambers&#160;to pass&#160;budgets&#160;that&#160;reflect&#160;their&#160;policy&#160;agenda.&#160;One&#160;potential&#160;flash&#160;<br/>point&#160;will&#160;occur&#160;in&#160;July,&#160;when&#160;th<a href="https://www.congress.gov/bill/116th-congress/house-bill/3877/text">e&#160;</a></p> <p style="position:absolute;top:1074px;left:438px;white-space:nowrap" class="ft044"><a href="https://www.congress.gov/bill/116th-congress/house-bill/3877/text">federal&#160;debt&#160;limit</a></p> <p style="position:absolute;top:1074px;left:542px;white-space:nowrap" class="ft07"><a href="https://www.congress.gov/bill/116th-congress/house-bill/3877/text">&#160;</a>will&#160;be&#160;reinstated&#160;under&#160;current&#160;law.&#160;</p> </div> <!-- Page 9 --> <a name="9"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page9-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022009.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">9&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:88px;left:235px;white-space:nowrap" class="ft07">The&#160;politics&#160;of&#160;the&#160;split&#160;Senate,&#160;with&#160;Vice&#160;President&#160;Harris&#160;holding&#160;the&#160;deciding&#160;vote,&#160;should&#160;favor&#160;</p> <p style="position:absolute;top:106px;left:235px;white-space:nowrap" class="ft07">centrist&#160;Democrats&#160;and&#160;Republicans.&#160;On&#160;contentious&#160;legislation,&#160;those&#160;centrists&#160;will&#160;hold&#160;the&#160;critical&#160;</p> <p style="position:absolute;top:125px;left:235px;white-space:nowrap" class="ft07">swing&#160;vote.&#160;This&#160;suggests&#160;there&#160;will&#160;be&#160;a more&#160;moderate&#160;fiscal&#160;policy&#160;and&#160;broader&#160;legislative&#160;agenda,&#160;</p> <p style="position:absolute;top:144px;left:235px;white-space:nowrap" class="ft07">which&#160;will&#160;limit&#160;the&#160;size&#160;of&#160;government&#160;spending&#160;increases&#160;or&#160;tax&#160;increases&#160;that&#160;more&#160;progressive&#160;</p> <p style="position:absolute;top:163px;left:235px;white-space:nowrap" class="ft07">Democrats&#160;might&#160;favor.&#160;</p> <p style="position:absolute;top:201px;left:235px;white-space:nowrap" class="ft07">The&#160;additional&#160;fiscal&#160;support&#160;will&#160;quickly&#160;boost&#160;the&#160;economy,&#160;pushing&#160;real&#160;GDP&#160;growth&#160;to&#160;well&#160;over&#160;</p> <p style="position:absolute;top:220px;left:235px;white-space:nowrap" class="ft07">4%&#160;annualized in the&#160;first&#160;quarter&#160;of&#160;this&#160;year,&#160;despite&#160;the&#160;intensifying&#160;pandemic,&#160;and to&#160;more&#160;than&#160;</p> <p style="position:absolute;top:239px;left:235px;white-space:nowrap" class="ft07">5% for&#160;all&#160;of&#160;2021.&#160;This&#160;is&#160;a percentage&#160;point&#160;more&#160;growth&#160;than&#160;we&#160;expected&#160;in&#160;last&#160;month’s&#160;</p> <p style="position:absolute;top:257px;left:235px;white-space:nowrap" class="ft07">forecast,&#160;which&#160;was&#160;based&#160;on&#160;the&#160;incorrect&#160;assumption&#160;the&#160;Senate&#160;would&#160;remain&#160;in&#160;Republican&#160;</p> <p style="position:absolute;top:276px;left:235px;white-space:nowrap" class="ft07">control.&#160;Real&#160;GDP&#160;should&#160;post&#160;another&#160;5% gain&#160;in&#160;2022,&#160;about&#160;0.5&#160;percentage&#160;point&#160;more&#160;than&#160;</p> <p style="position:absolute;top:295px;left:235px;white-space:nowrap" class="ft07">previously&#160;forecast.&#160;At&#160;this&#160;pace&#160;of&#160;growth,&#160;the&#160;economy&#160;is&#160;expected&#160;to create&#160;4.6&#160;million&#160;jobs&#160;this&#160;</p> <p style="position:absolute;top:314px;left:235px;white-space:nowrap" class="ft07">year&#160;and&#160;an&#160;additional&#160;4&#160;million&#160;next&#160;year,&#160;and&#160;to have&#160;fully&#160;recovered&#160;the&#160;10&#160;million&#160;jobs&#160;the&#160;</p> <p style="position:absolute;top:332px;left:235px;white-space:nowrap" class="ft07">economy&#160;is&#160;still&#160;down&#160;from&#160;its&#160;pre-pandemic&#160;peak&#160;by&#160;early&#160;2023.&#160;This&#160;is&#160;about&#160;when&#160;the&#160;economy&#160;</p> <p style="position:absolute;top:351px;left:235px;white-space:nowrap" class="ft043">will&#160;have&#160;returned&#160;to full&#160;employment—an&#160;unemployment&#160;rate&#160;of&#160;4% to&#160;4.5% and&#160;a labor&#160;force&#160;<br/>participation&#160;rate&#160;of&#160;62.5%.&#160;This&#160;is&#160;almost&#160;a year&#160;sooner&#160;than&#160;previously&#160;forecast.&#160;</p> <p style="position:absolute;top:558px;left:752px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:745px;left:235px;white-space:nowrap" class="ft07">The&#160;more-expansive&#160;fiscal&#160;policy&#160;that&#160;we&#160;expect&#160;from&#160;the&#160;Biden&#160;administration&#160;and&#160;Congress&#160;is&#160;</p> <p style="position:absolute;top:764px;left:235px;white-space:nowrap" class="ft07">good&#160;economic&#160;policy.&#160;The&#160;economy&#160;is&#160;far&#160;from&#160;full&#160;employment,&#160;inflation&#160;remains&#160;well&#160;below the&#160;</p> <p style="position:absolute;top:783px;left:235px;white-space:nowrap" class="ft07">Federal&#160;Reserve’s&#160;2% target,&#160;and&#160;the&#160;Fed&#160;has&#160;all&#160;but&#160;promised&#160;to keep&#160;short-term&#160;rates&#160;at&#160;the&#160;zero&#160;</p> <p style="position:absolute;top:801px;left:235px;white-space:nowrap" class="ft07">lower&#160;bound until&#160;the&#160;economy&#160;is&#160;at&#160;full&#160;employment&#160;and&#160;inflation has&#160;been&#160;consistently&#160;above&#160;2%.&#160;</p> <p style="position:absolute;top:820px;left:235px;white-space:nowrap" class="ft07">Long-term&#160;interest&#160;rates&#160;are&#160;also near&#160;historic&#160;lows.&#160;Ten-year&#160;Treasury&#160;yields&#160;rose&#160;sharply&#160;in&#160;the&#160;</p> <p style="position:absolute;top:839px;left:235px;white-space:nowrap" class="ft07">wake of&#160;the&#160;Georgia election&#160;and&#160;investor&#160;expectations&#160;will&#160;shift&#160;as&#160;the&#160;Democrats&#160;pump&#160;up&#160;fiscal&#160;</p> <p style="position:absolute;top:858px;left:235px;white-space:nowrap" class="ft07">policy&#160;and&#160;economic&#160;growth,&#160;but&#160;yields&#160;are&#160;still&#160;only&#160;just&#160;over&#160;1%.&#160;It’s&#160;easy&#160;to make&#160;the&#160;case&#160;that&#160;</p> <p style="position:absolute;top:877px;left:235px;white-space:nowrap" class="ft07">investments&#160;in&#160;infrastructure,&#160;housing&#160;and&#160;education&#160;have&#160;returns&#160;that&#160;are&#160;well&#160;above&#160;the&#160;cost&#160;of&#160;</p> <p style="position:absolute;top:895px;left:235px;white-space:nowrap" class="ft07">government&#160;borrowing.&#160;Adding&#160;to the&#160;rationale&#160;for&#160;more&#160;fiscal&#160;support&#160;is&#160;that&#160;the&#160;pandemic&#160;has&#160;</p> <p style="position:absolute;top:914px;left:235px;white-space:nowrap" class="ft07">ravaged&#160;the&#160;finances&#160;of&#160;lower-income&#160;households&#160;and&#160;minorities.&#160;These&#160;groups&#160;were&#160;only&#160;beginning&#160;</p> <p style="position:absolute;top:933px;left:235px;white-space:nowrap" class="ft07">to recover&#160;financially&#160;from&#160;the&#160;financial&#160;crisis&#160;when&#160;the&#160;pandemic&#160;struck.&#160;Without&#160;substantial&#160;</p> <p style="position:absolute;top:952px;left:235px;white-space:nowrap" class="ft07">targeted&#160;government&#160;support&#160;like&#160;we&#160;expect&#160;to see&#160;legislated&#160;in&#160;coming&#160;months,&#160;their&#160;prospects&#160;are&#160;</p> <p style="position:absolute;top:971px;left:235px;white-space:nowrap" class="ft07">poor.&#160;This&#160;policy&#160;will&#160;add&#160;to the&#160;nation’s&#160;fiscal&#160;challenges,&#160;but&#160;those&#160;should&#160;be&#160;addressed&#160;through&#160;</p> <p style="position:absolute;top:989px;left:235px;white-space:nowrap" class="ft043">both&#160;government&#160;spending&#160;restraint&#160;and&#160;tax&#160;increases&#160;only&#160;once&#160;the&#160;economy&#160;has&#160;returned&#160;to full&#160;<br/>employment.&#160;</p> <p style="position:absolute;top:1046px;left:235px;white-space:nowrap" class="ft07">With&#160;the&#160;economy projected&#160;to&#160;achieve&#160;full&#160;employment&#160;by early 2023,&#160;we&#160;expect the&#160;Fed&#160;to&#160;begin&#160;</p> <p style="position:absolute;top:1065px;left:235px;white-space:nowrap" class="ft07">normalizing&#160;short-term&#160;rates&#160;by&#160;fall&#160;2023.&#160;By&#160;then,&#160;inflation&#160;should&#160;be&#160;firmly&#160;above&#160;the&#160;Fed’s&#160;2%&#160;</p> </div> <!-- Page 10 --> <a name="10"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page10-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022010.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">10&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:88px;left:235px;white-space:nowrap" class="ft07">target&#160;and&#160;inflation&#160;expectations&#160;even&#160;higher.&#160;It&#160;will&#160;take&#160;approximately&#160;three&#160;years&#160;for&#160;the&#160;Fed&#160;to&#160;</p> <p style="position:absolute;top:106px;left:235px;white-space:nowrap" class="ft07">increase&#160;the&#160;federal&#160;funds&#160;rate&#160;target&#160;to its&#160;2.5%&#160;long-run&#160;equilibrium&#160;rate,&#160;or&#160;r-star.&#160;Long-term&#160;rates&#160;</p> <p style="position:absolute;top:125px;left:235px;white-space:nowrap" class="ft07">will&#160;rise&#160;sooner&#160;as&#160;the&#160;Fed&#160;tapers&#160;its&#160;quantitative&#160;easing&#160;by&#160;early&#160;2022,&#160;and&#160;bond&#160;investors&#160;anticipate&#160;</p> <p style="position:absolute;top:144px;left:235px;white-space:nowrap" class="ft07">a full-employment&#160;economy&#160;with&#160;higher&#160;inflation.&#160;Ten-year&#160;Treasury&#160;yields&#160;are&#160;projected&#160;to end&#160;this&#160;</p> <p style="position:absolute;top:163px;left:235px;white-space:nowrap" class="ft043">year&#160;near&#160;1.5%,&#160;2.3%&#160;by&#160;year-end 2022,&#160;and close&#160;to&#160;3%&#160;when&#160;the&#160;Fed&#160;starts&#160;normalizing&#160;short-<br/>term&#160;rates&#160;in&#160;fall&#160;2023.&#160;</p> <p style="position:absolute;top:220px;left:235px;white-space:nowrap" class="ft07">The&#160;next&#160;few&#160;months&#160;will&#160;be&#160;difficult,&#160;but&#160;the&#160;next&#160;few&#160;years&#160;look&#160;increasingly&#160;bright.&#160;The&#160;raging&#160;</p> <p style="position:absolute;top:239px;left:235px;white-space:nowrap" class="ft07">pandemic&#160;will&#160;fade&#160;by&#160;mid-2021&#160;once&#160;a majority&#160;of&#160;Americans&#160;are&#160;vaccinated,&#160;and&#160;the&#160;economy&#160;will&#160;</p> <p style="position:absolute;top:257px;left:235px;white-space:nowrap" class="ft07">quickly&#160;get&#160;back&#160;on&#160;track&#160;thanks&#160;in&#160;significant&#160;part&#160;to robust&#160;fiscal&#160;and&#160;monetary&#160;policy&#160;support.&#160;</p> <p style="position:absolute;top:295px;left:235px;white-space:nowrap" class="ft035">Next&#160;Week&#160;</p> <p style="position:absolute;top:313px;left:235px;white-space:nowrap" class="ft07">Fresh&#160;data will&#160;be&#160;somewhat&#160;limited&#160;next&#160;week,&#160;but&#160;new jobless&#160;claims&#160;will&#160;be&#160;an&#160;important&#160;marker.&#160;</p> <p style="position:absolute;top:331px;left:235px;white-space:nowrap" class="ft07">This&#160;week's&#160;increase&#160;in unemloyment&#160;insurance&#160;claims&#160;was&#160;discouraging,&#160;and&#160;it&#160;is&#160;clear&#160;that&#160;this&#160;winter&#160;</p> <p style="position:absolute;top:350px;left:235px;white-space:nowrap" class="ft07">will&#160;be&#160;difficult&#160;for&#160;the&#160;economy&#160;and&#160;the&#160;labor&#160;market.&#160;Still,&#160;better&#160;times&#160;are&#160;ahead,&#160;particularly&#160;as&#160;</p> <p style="position:absolute;top:369px;left:235px;white-space:nowrap" class="ft07">additional&#160;fiscal&#160;support&#160;is&#160;on&#160;the&#160;way.&#160;In&#160;housing,&#160;we&#160;will&#160;see&#160;a fresh&#160;take&#160;on&#160;the&#160;market&#160;index&#160;from&#160;the&#160;</p> <p style="position:absolute;top:388px;left:235px;white-space:nowrap" class="ft07">National&#160;Association&#160;of&#160;Home&#160;Builders,&#160;which&#160;edged&#160;downward&#160;last&#160;month,&#160;and&#160;the&#160;December&#160;report&#160;</p> <p style="position:absolute;top:406px;left:235px;white-space:nowrap" class="ft07">on&#160;housing&#160;starts&#160;and&#160;permits,&#160;which&#160;slowed&#160;in&#160;November.&#160;</p> <p style="position:absolute;top:425px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:444px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:463px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:482px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:500px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:519px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:538px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:557px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:576px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:594px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:613px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:632px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:651px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:670px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:688px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:707px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:726px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:745px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:764px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:782px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:801px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:820px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:839px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:858px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:876px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:895px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:914px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:933px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:951px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:970px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:989px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1008px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1027px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1045px;left:235px;white-space:nowrap" class="ft07">&#160;</p> </div> <!-- Page 11 --> <a name="11"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page11-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022011.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">11&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:88px;left:235px;white-space:nowrap" class="ft016">EUROPE&#160;</p> <p style="position:absolute;top:113px;left:235px;white-space:nowrap" class="ft07">By&#160;Ross&#160;Cioffi&#160;of&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:132px;left:235px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:149px;left:235px;white-space:nowrap" class="ft042">We&#160;Don’t&#160;Expect&#160;Changes&#160;From&#160;the&#160;ECB&#160;</p> <p style="position:absolute;top:175px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:193px;left:235px;white-space:nowrap" class="ft07">We&#160;aren’t&#160;expecting&#160;many&#160;surprises&#160;next&#160;week.&#160;The&#160;main&#160;releases&#160;will&#160;be&#160;the&#160;final&#160;estimates&#160;of&#160;</p> <p style="position:absolute;top:212px;left:235px;white-space:nowrap" class="ft07">consumer&#160;price&#160;inflation,&#160;which&#160;we&#160;predict&#160;followed&#160;the&#160;preliminary&#160;reports,&#160;and&#160;the&#160;first&#160;monetary&#160;</p> <p style="position:absolute;top:231px;left:235px;white-space:nowrap" class="ft07">policy&#160;meeting&#160;of&#160;the&#160;European&#160;Central&#160;Bank&#160;in&#160;2021.&#160;We&#160;predict&#160;no policy&#160;changes&#160;there.&#160;We&#160;expect&#160;</p> <p style="position:absolute;top:250px;left:235px;white-space:nowrap" class="ft07">that&#160;euro zone&#160;consumer&#160;prices&#160;fell&#160;0.3% y/y&#160;in&#160;December,&#160;the&#160;same&#160;as&#160;in&#160;November.&#160;Prices&#160;will&#160;be&#160;</p> <p style="position:absolute;top:268px;left:235px;white-space:nowrap" class="ft07">weighed&#160;down&#160;by&#160;energy,&#160;and&#160;in&#160;particular&#160;by&#160;fuels,&#160;despite&#160;the&#160;fact&#160;that&#160;Brent&#160;crude&#160;barrel&#160;prices&#160;</p> <p style="position:absolute;top:287px;left:235px;white-space:nowrap" class="ft07">began&#160;to increase&#160;more&#160;substantially&#160;over&#160;the&#160;course&#160;of&#160;the&#160;month.&#160;Demand&#160;remains&#160;weak&#160;with&#160;</p> <p style="position:absolute;top:306px;left:235px;white-space:nowrap" class="ft07">mobility&#160;so tightly&#160;restricted,&#160;so we&#160;don’t&#160;expect&#160;prices&#160;at&#160;the&#160;pumps&#160;to begin&#160;rising&#160;again&#160;in&#160;yearly&#160;</p> <p style="position:absolute;top:325px;left:235px;white-space:nowrap" class="ft07">terms&#160;until&#160;February&#160;or&#160;March.&#160;According&#160;to the&#160;preliminary&#160;release,&#160;price&#160;growth&#160;picked&#160;up&#160;slightly&#160;</p> <p style="position:absolute;top:344px;left:235px;white-space:nowrap" class="ft07">among&#160;services,&#160;but&#160;further&#160;declines&#160;in&#160;nonenergy&#160;goods&#160;left&#160;the&#160;core&#160;inflation&#160;rate&#160;unchanged&#160;from&#160;the&#160;</p> <p style="position:absolute;top:362px;left:235px;white-space:nowrap" class="ft07">previous&#160;month&#160;at&#160;0.2%.&#160;</p> <p style="position:absolute;top:381px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:400px;left:235px;white-space:nowrap" class="ft07">&#160;Meanwhile,&#160;we&#160;do not&#160;expect&#160;any&#160;changes&#160;in&#160;the&#160;policy&#160;stance&#160;of&#160;the&#160;ECB&#160;at&#160;its&#160;meeting&#160;next&#160;</p> <p style="position:absolute;top:419px;left:235px;white-space:nowrap" class="ft07">Thursday.&#160;The&#160;main&#160;refinancing&#160;rate&#160;target&#160;will&#160;be&#160;left&#160;at&#160;0%,&#160;while&#160;the&#160;bank&#160;will&#160;likely&#160;leave&#160;its&#160;</p> <p style="position:absolute;top:438px;left:235px;white-space:nowrap" class="ft07">Pandemic&#160;Emergency&#160;Purchase&#160;Program&#160;unchanged&#160;after&#160;increasing&#160;the&#160;total&#160;envelope&#160;size&#160;at&#160;its&#160;</p> <p style="position:absolute;top:456px;left:235px;white-space:nowrap" class="ft07">December&#160;meeting&#160;by&#160;€500&#160;billion,&#160;to €1.85&#160;trillion.&#160;The&#160;first&#160;quarter&#160;will&#160;be&#160;rough&#160;for&#160;the&#160;euro zone&#160;</p> <p style="position:absolute;top:475px;left:235px;white-space:nowrap" class="ft07">though,&#160;especially&#160;as&#160;countries&#160;seem&#160;set&#160;to stay&#160;in&#160;lockdown&#160;into February.&#160;The&#160;ECB&#160;will&#160;likely&#160;be&#160;called&#160;</p> <p style="position:absolute;top:494px;left:235px;white-space:nowrap" class="ft07">to act&#160;once&#160;more&#160;before&#160;the&#160;pandemic&#160;is&#160;over,&#160;but&#160;not&#160;yet.&#160;&#160;</p> <p style="position:absolute;top:513px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:532px;left:235px;white-space:nowrap" class="ft07">Finally,&#160;the&#160;U.K.&#160;will&#160;be&#160;releasing an&#160;estimate of&#160;retail&#160;sales&#160;in&#160;December.&#160;We&#160;are&#160;expecting that&#160;the&#160;lead&#160;</p> <p style="position:absolute;top:550px;left:235px;white-space:nowrap" class="ft07">up&#160;to the&#160;holiday&#160;season&#160;lifted&#160;sales&#160;1.5% month&#160;on&#160;month&#160;after&#160;the&#160;2.45% increase&#160;in&#160;November.&#160;</p> <p style="position:absolute;top:569px;left:235px;white-space:nowrap" class="ft07">However,&#160;the&#160;U.K.&#160;economy&#160;is&#160;not&#160;in&#160;a good&#160;spot.&#160;The&#160;pandemic&#160;and&#160;Brexit&#160;are&#160;weighing&#160;heavily&#160;on&#160;</p> <p style="position:absolute;top:588px;left:235px;white-space:nowrap" class="ft07">activity,&#160;such&#160;that&#160;we&#160;suspect&#160;the&#160;country&#160;is&#160;at&#160;risk&#160;of&#160;having&#160;contracted&#160;during&#160;the&#160;final&#160;quarter&#160;of&#160;</p> <p style="position:absolute;top:607px;left:235px;white-space:nowrap" class="ft07">2020&#160;and&#160;in&#160;the&#160;first&#160;quarter&#160;of&#160;2021.&#160;</p> <p style="position:absolute;top:626px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:750px;left:864px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:764px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:794px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:824px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:854px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:884px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:914px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:944px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:974px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1004px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1034px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:647px;left:331px;white-space:nowrap" class="ft05">Key&#160;indicators&#160;</p> <p style="position:absolute;top:647px;left:646px;white-space:nowrap" class="ft05">Units</p> <p style="position:absolute;top:647px;left:706px;white-space:nowrap" class="ft05">Moody's&#160;Analytics</p> <p style="position:absolute;top:647px;left:819px;white-space:nowrap" class="ft05">Last</p> <p style="position:absolute;top:665px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>10:00 a.m.</chron></p> <p style="position:absolute;top:665px;left:331px;white-space:nowrap" class="ft036">Italy:&#160;Consumer&#160;Price Index&#160;for&#160;December</p> <p style="position:absolute;top:665px;left:623px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:665px;left:739px;white-space:nowrap" class="ft036">-0.1</p> <p style="position:absolute;top:665px;left:820px;white-space:nowrap" class="ft036">-0.2</p> <p style="position:absolute;top:682px;left:238px;white-space:nowrap" class="ft036">Tues&#160;@&#160;<chron>8:00 a.m.</chron></p> <p style="position:absolute;top:682px;left:331px;white-space:nowrap" class="ft036">Germany:&#160;Consumer&#160;Price Index&#160;for&#160;December</p> <p style="position:absolute;top:682px;left:623px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:682px;left:739px;white-space:nowrap" class="ft036">-0.3</p> <p style="position:absolute;top:682px;left:820px;white-space:nowrap" class="ft036">-0.3</p> <p style="position:absolute;top:699px;left:238px;white-space:nowrap" class="ft036">Wed&#160;@&#160;<chron>8:00 a.m.</chron></p> <p style="position:absolute;top:699px;left:331px;white-space:nowrap" class="ft036">U.K.:&#160;Consumer&#160;Price Index&#160;for&#160;December</p> <p style="position:absolute;top:699px;left:623px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:699px;left:740px;white-space:nowrap" class="ft036">0.5</p> <p style="position:absolute;top:699px;left:821px;white-space:nowrap" class="ft036">0.3</p> <p style="position:absolute;top:716px;left:238px;white-space:nowrap" class="ft036">Wed&#160;@&#160;<chron>10:00 a.m.</chron></p> <p style="position:absolute;top:716px;left:331px;white-space:nowrap" class="ft036">Euro&#160;Zone:&#160;Consumer&#160;Price Index&#160;for&#160;December</p> <p style="position:absolute;top:716px;left:623px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:716px;left:739px;white-space:nowrap" class="ft036">-0.3</p> <p style="position:absolute;top:716px;left:820px;white-space:nowrap" class="ft036">-0.3</p> <p style="position:absolute;top:733px;left:238px;white-space:nowrap" class="ft036">Thur&#160;@&#160;<chron>1:45&#160;p.m.</chron></p> <p style="position:absolute;top:733px;left:331px;white-space:nowrap" class="ft036">Euro&#160;Zone:&#160;Monetary&#160;Policy&#160;Meeting</p> <p style="position:absolute;top:733px;left:654px;white-space:nowrap" class="ft036">%</p> <p style="position:absolute;top:733px;left:740px;white-space:nowrap" class="ft036">0.0</p> <p style="position:absolute;top:733px;left:820px;white-space:nowrap" class="ft036">0.0</p> <p style="position:absolute;top:750px;left:238px;white-space:nowrap" class="ft036">Fri&#160;@&#160;<chron>9:30&#160;a.m.</chron></p> <p style="position:absolute;top:750px;left:331px;white-space:nowrap" class="ft036">U.K.:&#160;Retail&#160;Sales&#160;for&#160;December</p> <p style="position:absolute;top:750px;left:623px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:750px;left:741px;white-space:nowrap" class="ft036">1.5</p> <p style="position:absolute;top:750px;left:821px;white-space:nowrap" class="ft036">2.4</p> </div> <!-- Page 12 --> <a name="12"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft045{font-size:1px;font-family:Times;color:#000000;} .ft046{font-size:8px;font-family:Times;color:#ff0000;} .ft047{font-size:8px;font-family:Times;color:#00af50;} .ft048{font-size:8px;font-family:Times;color:#4471c4;} --> </style> <div id="page12-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022012.png" alt="background image"/> <p style="position:absolute;top:26px;left:262px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:289px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:451px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:26px;left:563px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:235px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:57px;left:64px;white-space:nowrap" class="ft031">The&#160;Week&#160;Ahead&#160;</p> <p style="position:absolute;top:74px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:90px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:105px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:120px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:135px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:151px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:166px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:181px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:196px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:212px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:227px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:242px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:258px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:273px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:288px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:303px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:318px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:334px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:349px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:364px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:379px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:395px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:410px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:425px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:440px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:456px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:471px;left:98px;white-space:nowrap" class="ft01">&#160;&#160;&#160;&#160;</p> <p style="position:absolute;top:486px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:501px;left:64px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:525px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">12&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:88px;left:235px;white-space:nowrap" class="ft016">Asia-Pacific&#160;&#160;</p> <p style="position:absolute;top:112px;left:235px;white-space:nowrap" class="ft07">By&#160;Shahana Mukherjee&#160;of&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:142px;left:235px;white-space:nowrap" class="ft042">China’s&#160;Economy&#160;Powered&#160;Ahead&#160;in&#160;2020&#160;</p> <p style="position:absolute;top:179px;left:235px;white-space:nowrap" class="ft045">&#160;</p> <p style="position:absolute;top:183px;left:235px;white-space:nowrap" class="ft07">We&#160;expect&#160;China’s&#160;economy&#160;to have&#160;grown&#160;by&#160;8.1% in&#160;yearly&#160;terms&#160;in&#160;the&#160;December&#160;quarter,&#160;following&#160;</p> <p style="position:absolute;top:201px;left:235px;white-space:nowrap" class="ft07">a 4.9% increase&#160;in&#160;the&#160;prior&#160;quarter.&#160;In&#160;quarterly&#160;terms,&#160;we&#160;forecast&#160;a stronger&#160;performance&#160;with&#160;a&#160;</p> <p style="position:absolute;top:219px;left:235px;white-space:nowrap" class="ft07">3.8% gain,&#160;following&#160;a 3.1% reading&#160;in&#160;the&#160;September&#160;quarter.&#160;&#160;</p> <p style="position:absolute;top:249px;left:235px;white-space:nowrap" class="ft07">China’s&#160;economy&#160;continued&#160;its&#160;enviable&#160;run&#160;through&#160;most&#160;of&#160;2020,&#160;aided&#160;by&#160;a substantial&#160;state-funded&#160;</p> <p style="position:absolute;top:267px;left:235px;white-space:nowrap" class="ft07">industrial&#160;injection.&#160;Not&#160;only&#160;has&#160;China’s&#160;external&#160;position&#160;strengthened&#160;over&#160;the&#160;December&#160;quarter&#160;</p> <p style="position:absolute;top:285px;left:235px;white-space:nowrap" class="ft07">due&#160;to an&#160;uptick&#160;in&#160;already&#160;strong&#160;export&#160;growth,&#160;but&#160;domestic&#160;conditions&#160;have&#160;also&#160;been&#160;on the&#160;mend,&#160;</p> <p style="position:absolute;top:303px;left:235px;white-space:nowrap" class="ft07">with&#160;spending&#160;having&#160;picked&#160;up&#160;since&#160;August.&#160;Stronger&#160;aggregate&#160;demand&#160;and&#160;improving&#160;investor&#160;</p> <p style="position:absolute;top:321px;left:235px;white-space:nowrap" class="ft07">sentiment&#160;are&#160;expected&#160;to have&#160;anchored&#160;another&#160;quarter&#160;of&#160;impressive&#160;growth.&#160;&#160;</p> <p style="position:absolute;top:351px;left:235px;white-space:nowrap" class="ft07">China’s&#160;consumer&#160;and production indicators&#160;are&#160;similarly&#160;expected&#160;to have&#160;marked&#160;another&#160;month&#160;of&#160;</p> <p style="position:absolute;top:369px;left:235px;white-space:nowrap" class="ft07">growth.&#160;Given&#160;the&#160;largely&#160;favourable&#160;demand&#160;conditions,&#160;China’s&#160;industrial&#160;output&#160;is&#160;likely&#160;to have&#160;</p> <p style="position:absolute;top:387px;left:235px;white-space:nowrap" class="ft07">increased&#160;at&#160;a steady&#160;rate&#160;of&#160;7% in&#160;yearly&#160;terms&#160;in&#160;December,&#160;while&#160;fixed&#160;asset&#160;investment&#160;is&#160;expected&#160;</p> <p style="position:absolute;top:405px;left:235px;white-space:nowrap" class="ft07">to have&#160;picked&#160;up&#160;a notch,&#160;settling&#160;at&#160;2.8% over&#160;this&#160;period.&#160;Retail&#160;sales&#160;likely&#160;increased&#160;by&#160;5.2% in&#160;</p> <p style="position:absolute;top:423px;left:235px;white-space:nowrap" class="ft07">December,&#160;improving&#160;on&#160;the&#160;5% increase&#160;in&#160;November,&#160;as&#160;income&#160;and&#160;employment&#160;levels&#160;gradually&#160;</p> <p style="position:absolute;top:441px;left:235px;white-space:nowrap" class="ft07">recover&#160;to pre-COVID-19&#160;levels.&#160;</p> <p style="position:absolute;top:471px;left:235px;white-space:nowrap" class="ft07">The&#160;Bank&#160;of&#160;Japan&#160;is&#160;expected&#160;to&#160;keep&#160;its&#160;monetary&#160;settings&#160;unchanged in its&#160;January&#160;announcement.&#160;</p> <p style="position:absolute;top:489px;left:235px;white-space:nowrap" class="ft07">The&#160;apex&#160;bank&#160;announced&#160;a range&#160;of&#160;measures&#160;last&#160;month,&#160;including&#160;a six-month&#160;extension to&#160;the&#160;</p> <p style="position:absolute;top:507px;left:235px;white-space:nowrap" class="ft07">emergency&#160;lending&#160;programme,&#160;to combat&#160;the&#160;growing&#160;strain&#160;from&#160;an&#160;intensifying&#160;third&#160;wave&#160;of&#160;the&#160;</p> <p style="position:absolute;top:525px;left:235px;white-space:nowrap" class="ft07">pandemic.&#160;Though&#160;domestic&#160;conditions&#160;have&#160;deteriorated since&#160;then and mandated the&#160;reimposition of&#160;</p> <p style="position:absolute;top:543px;left:235px;white-space:nowrap" class="ft07">a&#160;state&#160;of&#160;emergency across&#160;multiple&#160;prefectures,&#160;the&#160;expected&#160;impact will&#160;be&#160;limited&#160;this&#160;time,&#160;</p> <p style="position:absolute;top:561px;left:235px;white-space:nowrap" class="ft07">assuming&#160;no extensions,&#160;as&#160;the&#160;restrictions&#160;at&#160;this&#160;stage&#160;mostly&#160;affect&#160;restaurants&#160;and&#160;bars.&#160;Having&#160;</p> <p style="position:absolute;top:579px;left:235px;white-space:nowrap" class="ft07">mobilized&#160;substantial&#160;resources&#160;already,&#160;the&#160;BoJ&#160;is&#160;likely&#160;to adopt&#160;a wait-and-see&#160;approach&#160;until&#160;the&#160;</p> <p style="position:absolute;top:597px;left:235px;white-space:nowrap" class="ft07">initial&#160;signs&#160;of&#160;the&#160;effectiveness&#160;of&#160;current&#160;countermeasures&#160;surface.&#160;</p> <p style="position:absolute;top:627px;left:235px;white-space:nowrap" class="ft07">Australia’s&#160;unemployment&#160;rate&#160;is&#160;likely&#160;to have&#160;declined&#160;to 6.7% in&#160;December&#160;from&#160;6.8%&#160;in&#160;November.&#160;</p> <p style="position:absolute;top:645px;left:235px;white-space:nowrap" class="ft07">Domestic&#160;conditions&#160;have&#160;continued to&#160;recover&#160;since&#160;the&#160;easing&#160;of&#160;pandemic-related&#160;restrictions&#160;in&#160;</p> <p style="position:absolute;top:663px;left:235px;white-space:nowrap" class="ft07">Victoria,&#160;and&#160;all&#160;states&#160;are&#160;firmly&#160;on&#160;recovery&#160;course.&#160;Another&#160;month&#160;of&#160;strong&#160;spending&#160;during&#160;the&#160;</p> <p style="position:absolute;top:681px;left:235px;white-space:nowrap" class="ft07">holiday&#160;season,&#160;aided&#160;by&#160;conducive&#160;policy&#160;settings,&#160;is&#160;expected&#160;to have&#160;created&#160;more&#160;employment&#160;</p> <p style="position:absolute;top:699px;left:235px;white-space:nowrap" class="ft07">opportunities&#160;and&#160;eased&#160;the&#160;strain&#160;on&#160;the&#160;labour&#160;market.&#160;However,&#160;the&#160;temporary&#160;closure&#160;of&#160;certain&#160;</p> <p style="position:absolute;top:717px;left:235px;white-space:nowrap" class="ft07">state&#160;borders&#160;is&#160;expected&#160;to&#160;have weakened&#160;the&#160;revival&#160;momentum&#160;for&#160;tourism-related&#160;services.&#160;</p> <p style="position:absolute;top:747px;left:235px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:956px;left:864px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:780px;left:334px;white-space:nowrap" class="ft036">Key&#160;indicators&#160;</p> <p style="position:absolute;top:780px;left:616px;white-space:nowrap" class="ft036">Units</p> <p style="position:absolute;top:780px;left:676px;white-space:nowrap" class="ft036">Moody's&#160;Analytics&#160;Confidence&#160;Risk</p> <p style="position:absolute;top:780px;left:836px;white-space:nowrap" class="ft036">Last</p> <p style="position:absolute;top:798px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>11:30&#160;a.m.</chron></p> <p style="position:absolute;top:798px;left:334px;white-space:nowrap" class="ft036">Singapore&#160;Nonoil&#160;Exports&#160;for&#160;December</p> <p style="position:absolute;top:797px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:797px;left:706px;white-space:nowrap" class="ft036">-5.2</p> <p style="position:absolute;top:798px;left:775px;white-space:nowrap" class="ft036">2</p> <p style="position:absolute;top:798px;left:803px;white-space:nowrap" class="ft046">&#160;</p> <p style="position:absolute;top:797px;left:836px;white-space:nowrap" class="ft036">-4.9</p> <p style="position:absolute;top:816px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>1:00 p.m.</chron></p> <p style="position:absolute;top:816px;left:334px;white-space:nowrap" class="ft036">China&#160;GDP&#160;for&#160;Q4</p> <p style="position:absolute;top:815px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:815px;left:707px;white-space:nowrap" class="ft036">8.1</p> <p style="position:absolute;top:816px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:815px;left:803px;white-space:nowrap" class="ft046">&#160;</p> <p style="position:absolute;top:815px;left:838px;white-space:nowrap" class="ft036">4.9</p> <p style="position:absolute;top:833px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>1:00 p.m.</chron></p> <p style="position:absolute;top:833px;left:334px;white-space:nowrap" class="ft036">China&#160;Industrial&#160;Production&#160;for&#160;December</p> <p style="position:absolute;top:832px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:832px;left:712px;white-space:nowrap" class="ft036">7</p> <p style="position:absolute;top:833px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:832px;left:813px;white-space:nowrap" class="ft047"></p> <p style="position:absolute;top:832px;left:842px;white-space:nowrap" class="ft036">7</p> <p style="position:absolute;top:851px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>1:00 p.m.</chron></p> <p style="position:absolute;top:851px;left:334px;white-space:nowrap" class="ft036">China&#160;Retail&#160;Sales&#160;for&#160;December</p> <p style="position:absolute;top:850px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:850px;left:707px;white-space:nowrap" class="ft036">5.2</p> <p style="position:absolute;top:851px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:850px;left:813px;white-space:nowrap" class="ft047"></p> <p style="position:absolute;top:850px;left:842px;white-space:nowrap" class="ft036">5</p> <p style="position:absolute;top:868px;left:238px;white-space:nowrap" class="ft036">Mon&#160;@&#160;<chron>1:00 p.m.</chron></p> <p style="position:absolute;top:868px;left:334px;white-space:nowrap" class="ft036">China&#160;Fixed&#160;Asset&#160;Investment&#160;for&#160;December</p> <p style="position:absolute;top:867px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:867px;left:707px;white-space:nowrap" class="ft036">2.8</p> <p style="position:absolute;top:868px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:867px;left:813px;white-space:nowrap" class="ft047"></p> <p style="position:absolute;top:867px;left:838px;white-space:nowrap" class="ft036">2.6</p> <p style="position:absolute;top:885px;left:238px;white-space:nowrap" class="ft036">Thur&#160;@&#160;<chron>10:50 a.m.</chron></p> <p style="position:absolute;top:885px;left:334px;white-space:nowrap" class="ft036">Japan&#160;Foreign&#160;Trade for&#160;December</p> <p style="position:absolute;top:885px;left:617px;white-space:nowrap" class="ft036">¥ bil</p> <p style="position:absolute;top:885px;left:706px;white-space:nowrap" class="ft036">220</p> <p style="position:absolute;top:885px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:885px;left:803px;white-space:nowrap" class="ft046">&#160;</p> <p style="position:absolute;top:885px;left:837px;white-space:nowrap" class="ft036">367</p> <p style="position:absolute;top:903px;left:238px;white-space:nowrap" class="ft036">Thur&#160;@&#160;<chron>11:30&#160;a.m.</chron></p> <p style="position:absolute;top:903px;left:334px;white-space:nowrap" class="ft036">Australia&#160;Employment&#160;for&#160;December</p> <p style="position:absolute;top:902px;left:622px;white-space:nowrap" class="ft036">%&#160;</p> <p style="position:absolute;top:902px;left:707px;white-space:nowrap" class="ft036">6.7</p> <p style="position:absolute;top:903px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:902px;left:813px;white-space:nowrap" class="ft047"></p> <p style="position:absolute;top:902px;left:838px;white-space:nowrap" class="ft036">6.8</p> <p style="position:absolute;top:921px;left:238px;white-space:nowrap" class="ft036">Thur&#160;@&#160;<chron>2:00 p.m.</chron></p> <p style="position:absolute;top:921px;left:334px;white-space:nowrap" class="ft036">Japan&#160;Monetary&#160;Policy&#160;for&#160;January</p> <p style="position:absolute;top:920px;left:624px;white-space:nowrap" class="ft036">%</p> <p style="position:absolute;top:919px;left:706px;white-space:nowrap" class="ft036">-0.1</p> <p style="position:absolute;top:921px;left:775px;white-space:nowrap" class="ft036">4</p> <p style="position:absolute;top:921px;left:810px;white-space:nowrap" class="ft048"></p> <p style="position:absolute;top:919px;left:836px;white-space:nowrap" class="ft036">-0.1</p> <p style="position:absolute;top:939px;left:238px;white-space:nowrap" class="ft036">Fri&#160;@&#160;<chron>8:45&#160;a.m.</chron></p> <p style="position:absolute;top:939px;left:334px;white-space:nowrap" class="ft036">New&#160;Zealand&#160;CPI&#160;for&#160;Q4</p> <p style="position:absolute;top:939px;left:607px;white-space:nowrap" class="ft036">%&#160;change</p> <p style="position:absolute;top:939px;left:708px;white-space:nowrap" class="ft036">1.1</p> <p style="position:absolute;top:939px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:938px;left:803px;white-space:nowrap" class="ft046">&#160;</p> <p style="position:absolute;top:939px;left:838px;white-space:nowrap" class="ft036">1.4</p> <p style="position:absolute;top:956px;left:238px;white-space:nowrap" class="ft036">Fri&#160;@&#160;<chron>10:30 a.m.</chron></p> <p style="position:absolute;top:956px;left:334px;white-space:nowrap" class="ft036">Japan&#160;Core CPI&#160;for&#160;December</p> <p style="position:absolute;top:955px;left:590px;white-space:nowrap" class="ft036">%&#160;change&#160;yr&#160;ago</p> <p style="position:absolute;top:955px;left:705px;white-space:nowrap" class="ft036">-0.8</p> <p style="position:absolute;top:956px;left:775px;white-space:nowrap" class="ft036">3</p> <p style="position:absolute;top:955px;left:803px;white-space:nowrap" class="ft046">&#160;</p> <p style="position:absolute;top:955px;left:836px;white-space:nowrap" class="ft036">-0.9</p> </div> <!-- Page 13 --> <a name="13"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft049{font-size:11px;font-family:Times;color:#0078bd;} .ft050{font-size:10px;font-family:Times;color:#0078bd;} .ft051{font-size:13px;font-family:Times;color:#0078bd;} .ft052{font-size:12px;line-height:18px;font-family:Times;color:#000000;} .ft053{font-size:13px;line-height:27px;font-family:Times;color:#000000;} --> </style> <div id="page13-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022013.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">13&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">The&#160;Long&#160;View&#160;</p> <p style="position:absolute;top:78px;left:97px;white-space:nowrap" class="ft031">d</p> <p style="position:absolute;top:78px;left:129px;white-space:nowrap" class="ft031">&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft016">The&#160;Long&#160;View&#160;</p> <p style="position:absolute;top:112px;left:196px;white-space:nowrap" class="ft042">&#160;</p> <p style="position:absolute;top:136px;left:196px;white-space:nowrap" class="ft042">Already&#160;thin&#160;spreads&#160;suggest&#160;investment-grade corporate&#160;bond&#160;yields&#160;are&#160;</p> <p style="position:absolute;top:160px;left:196px;white-space:nowrap" class="ft042">likely&#160;to&#160;trend&#160;higher.&#160;</p> <p style="position:absolute;top:197px;left:196px;white-space:nowrap" class="ft052">&#160;<br/>By&#160;John&#160;Lonski,&#160;Chief&#160;Capital&#160;Markets&#160;Economist,&#160;Moody’s&#160;Capital&#160;Markets&#160;Research&#160;</p> <p style="position:absolute;top:233px;left:196px;white-space:nowrap" class="ft052"><chron>January&#160;14, 2021</chron>&#160;<br/>&#160;</p> <p style="position:absolute;top:277px;left:196px;white-space:nowrap" class="ft049">CREDIT SPREADS</p> <p style="position:absolute;top:276px;left:289px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:293px;left:196px;white-space:nowrap" class="ft07">As&#160;measured&#160;by&#160;Moody's&#160;long-term&#160;average&#160;corporate&#160;bond&#160;yield,&#160;the&#160;recent&#160;investment&#160;grade&#160;corporate&#160;</p> <p style="position:absolute;top:312px;left:196px;white-space:nowrap" class="ft07">bond yield spread of&#160;101&#160;basis&#160;points&#160;was less than&#160;its&#160;116&#160;basis-point&#160;median&#160;of&#160;the&#160;30&#160;years&#160;ended 2019.&#160;</p> <p style="position:absolute;top:331px;left:196px;white-space:nowrap" class="ft07">This&#160;spread&#160;may&#160;be&#160;no wider&#160;than&#160;110&#160;bp by&#160;year-end 2021.&#160;</p> <p style="position:absolute;top:367px;left:196px;white-space:nowrap" class="ft07">The&#160;recent&#160;composite&#160;high-yield bond&#160;spread&#160;of&#160;381&#160;bp&#160;approximates&#160;what&#160;is suggested&#160;by&#160;the&#160;accompanying&#160;</p> <p style="position:absolute;top:385px;left:196px;white-space:nowrap" class="ft07">long-term&#160;Baa&#160;industrial&#160;company&#160;bond&#160;yield&#160;spread&#160;of&#160;145&#160;bp&#160;but&#160;is&#160;narrower&#160;than&#160;what&#160;might&#160;be&#160;inferred&#160;</p> <p style="position:absolute;top:403px;left:196px;white-space:nowrap" class="ft07">from&#160;the&#160;recent&#160;VIX&#160;of&#160;22.9&#160;points.&#160;The&#160;latter&#160;has&#160;been&#160;historically&#160;associated&#160;with&#160;a&#160;645-bp&#160;midpoint&#160;for&#160;a&#160;</p> <p style="position:absolute;top:421px;left:196px;white-space:nowrap" class="ft07">composite&#160;high-yield bond spread.&#160;</p> <p style="position:absolute;top:452px;left:196px;white-space:nowrap" class="ft050">DEFAULTS</p> <p style="position:absolute;top:449px;left:250px;white-space:nowrap" class="ft051">&#160;</p> <p style="position:absolute;top:480px;left:196px;white-space:nowrap" class="ft07">November&#160;2020’s U.S.&#160;high-yield&#160;default&#160;rate&#160;of&#160;8.4% was&#160;up&#160;from&#160;November&#160;2019’s&#160;4.1%.&#160;The&#160;recent&#160;</p> <p style="position:absolute;top:498px;left:196px;white-space:nowrap" class="ft07">average&#160;high-yield&#160;EDF metric&#160;of&#160;2.90% portend&#160;a less-than-4% default&#160;rate&#160;by&#160;October&#160;2021.&#160;</p> <p style="position:absolute;top:530px;left:196px;white-space:nowrap" class="ft050">US&#160;CORPORATE BOND&#160;ISSUANCE&#160;&#160;</p> <p style="position:absolute;top:544px;left:196px;white-space:nowrap" class="ft07">Fourth-quarter&#160;2019’s&#160;worldwide&#160;offerings&#160;of&#160;corporate&#160;bonds&#160;revealed&#160;annual&#160;advances&#160;of&#160;15.3%&#160;for&#160;IG&#160;and&#160;</p> <p style="position:absolute;top:562px;left:196px;white-space:nowrap" class="ft07">329% for&#160;high-yield,&#160;wherein&#160;US$-denominated offerings&#160;dipped by&#160;0.8% for&#160;IG&#160;and&#160;surged&#160;higher&#160;by&#160;330%&#160;</p> <p style="position:absolute;top:580px;left:196px;white-space:nowrap" class="ft07">for&#160;high yield.&#160;</p> <p style="position:absolute;top:610px;left:196px;white-space:nowrap" class="ft07">First-quarter&#160;2020’s&#160;worldwide&#160;offerings&#160;of&#160;corporate&#160;bonds&#160;revealed&#160;annual&#160;advances&#160;of&#160;17.7% for&#160;IG&#160;and&#160;</p> <p style="position:absolute;top:628px;left:196px;white-space:nowrap" class="ft07">26.5% for&#160;high-yield,&#160;wherein&#160;US$-denominated&#160;offerings&#160;increased&#160;43.7% for&#160;IG&#160;and&#160;grew 21.4% for&#160;high&#160;</p> <p style="position:absolute;top:646px;left:196px;white-space:nowrap" class="ft07">yield.&#160;</p> <p style="position:absolute;top:676px;left:196px;white-space:nowrap" class="ft07">Second-quarter&#160;2020’s&#160;worldwide&#160;offerings&#160;of&#160;corporate&#160;bonds&#160;revealed&#160;annual&#160;surges&#160;of&#160;69% for&#160;IG&#160;and&#160;31%&#160;</p> <p style="position:absolute;top:694px;left:196px;white-space:nowrap" class="ft07">for&#160;high-yield,&#160;wherein&#160;US$-denominated offerings&#160;increased 142%&#160;for&#160;IG&#160;and grew&#160;45%&#160;for&#160;high&#160;yield.&#160;</p> <p style="position:absolute;top:724px;left:196px;white-space:nowrap" class="ft07">Third-quarter&#160;2020’s&#160;worldwide&#160;offerings&#160;of&#160;corporate&#160;bonds&#160;revealed&#160;an&#160;annual&#160;decline&#160;of&#160;6% for&#160;IG&#160;and&#160;an&#160;</p> <p style="position:absolute;top:743px;left:196px;white-space:nowrap" class="ft07">annual&#160;advance&#160;of&#160;44% for&#160;high-yield,&#160;wherein&#160;US$-denominated&#160;offerings&#160;increased&#160;12% for&#160;IG&#160;and&#160;soared&#160;</p> <p style="position:absolute;top:760px;left:196px;white-space:nowrap" class="ft07">upward&#160;56% for&#160;high&#160;yield.&#160;</p> <p style="position:absolute;top:790px;left:196px;white-space:nowrap" class="ft07">Fourth-quarter&#160;2020’s&#160;worldwide&#160;offerings&#160;of&#160;corporate&#160;bonds&#160;revealed&#160;an&#160;annual&#160;decline&#160;of&#160;11.9% for&#160;IG&#160;and&#160;</p> <p style="position:absolute;top:808px;left:196px;white-space:nowrap" class="ft07">an&#160;annual&#160;advance&#160;of&#160;4.4%&#160;for&#160;high-yield,&#160;wherein&#160;US$-denominated offerings&#160;increased&#160;by&#160;15.3% for&#160;IG&#160;and&#160;</p> <p style="position:absolute;top:826px;left:196px;white-space:nowrap" class="ft07">by&#160;10.6%&#160;for&#160;high&#160;yield.&#160;</p> <p style="position:absolute;top:856px;left:196px;white-space:nowrap" class="ft07">For&#160;2019,&#160;worldwide&#160;corporate&#160;bond&#160;offerings&#160;grew by&#160;5.4% annually&#160;(to <money>$2.447&#160;trillion</money>)&#160;for&#160;IG&#160;and&#160;advanced&#160;</p> <p style="position:absolute;top:874px;left:196px;white-space:nowrap" class="ft07">by 49.2%&#160;for&#160;high&#160;yield&#160;(to <money>$561&#160;billion</money>).&#160;The&#160;annual&#160;percent&#160;increases&#160;for&#160;2020’s&#160;worldwide&#160;corporate&#160;bond&#160;</p> <p style="position:absolute;top:892px;left:196px;white-space:nowrap" class="ft07">offerings&#160;are&#160;a&#160;18.4%&#160;(to&#160;<money>$2.899 trillion</money>) for&#160;IG&#160;and&#160;25.8%&#160;(to&#160;<money>$706&#160;billion</money>)&#160;for&#160;high yield.&#160;The&#160;expected&#160;</p> <p style="position:absolute;top:910px;left:196px;white-space:nowrap" class="ft07">annual&#160;declines&#160;for&#160;2021’s&#160;worldwide&#160;rated&#160;corporate&#160;bond&#160;issuance&#160;are&#160;15%&#160;for&#160;investment-grade&#160;and&#160;9% for&#160;</p> <p style="position:absolute;top:928px;left:196px;white-space:nowrap" class="ft07">high-yield.&#160;</p> <p style="position:absolute;top:959px;left:196px;white-space:nowrap" class="ft050">US&#160;ECONOMIC&#160;OUTLOOK</p> <p style="position:absolute;top:958px;left:334px;white-space:nowrap" class="ft049">&#160;</p> <p style="position:absolute;top:974px;left:196px;white-space:nowrap" class="ft07">Unacceptably&#160;high&#160;unemployment&#160;and&#160;other&#160;low rates&#160;of&#160;resource&#160;utilization&#160;will&#160;rein&#160;in&#160;Treasury&#160;bond&#160;yields.&#160;</p> <p style="position:absolute;top:992px;left:196px;white-space:nowrap" class="ft07">As&#160;long&#160;as&#160;the&#160;global&#160;economy&#160;operates&#160;below trend,&#160;1.25%&#160;will&#160;serve&#160;as&#160;the&#160;upper&#160;bound&#160;for&#160;the&#160;10-year&#160;</p> <p style="position:absolute;top:1011px;left:196px;white-space:nowrap" class="ft07">Treasury&#160;yield.&#160;Until&#160;COVID-19&#160;risks&#160;fade&#160;substantially,&#160;wider&#160;credit&#160;spreads&#160;are&#160;possible.&#160;For&#160;now,&#160;the&#160;</p> <p style="position:absolute;top:1030px;left:196px;white-space:nowrap" class="ft053">corporate&#160;credit&#160;market&#160;has&#160;priced&#160;in&#160;the&#160;widespread&#160;distribution&#160;of&#160;a COVID-19 vaccine&#160;by&#160;mid-2021.&#160;<br/>&#160;</p> <p style="position:absolute;top:1058px;left:412px;white-space:nowrap" class="ft07">&#160;</p> </div> <!-- Page 14 --> <a name="14"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft054{font-size:12px;font-family:Times;color:#0000ff;} --> </style> <div id="page14-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022014.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">14&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">The&#160;Long&#160;View&#160;</p> <p style="position:absolute;top:78px;left:97px;white-space:nowrap" class="ft031">d</p> <p style="position:absolute;top:78px;left:129px;white-space:nowrap" class="ft031">&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft016">Europe&#160;</p> <p style="position:absolute;top:112px;left:196px;white-space:nowrap" class="ft014">By&#160;Ross&#160;Cioffi&#160;of&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:130px;left:196px;white-space:nowrap" class="ft014"><chron>January&#160;14, 2021</chron>&#160;</p> <p style="position:absolute;top:166px;left:196px;white-space:nowrap" class="ft049">GERMANY&#160;</p> <p style="position:absolute;top:182px;left:196px;white-space:nowrap" class="ft014">With&#160;the&#160;pandemic&#160;raging&#160;in<a href="https://www.economy.com/economicview/geography/IDEU">&#160;</a></p> <p style="position:absolute;top:182px;left:364px;white-space:nowrap" class="ft054"><a href="https://www.economy.com/economicview/geography/IDEU">Germany</a></p> <p style="position:absolute;top:182px;left:418px;white-space:nowrap" class="ft014"><a href="https://www.economy.com/economicview/geography/IDEU">,</a>&#160;authorities&#160;there&#160;tightened&#160;social&#160;distancing&#160;measures&#160;until&#160;at&#160;least&#160;31&#160;</p> <p style="position:absolute;top:199px;left:196px;white-space:nowrap" class="ft014">January.&#160;The&#160;stricter&#160;lockdown&#160;will&#160;ban&#160;travel&#160;to hotspots&#160;and&#160;limit private&#160;meetings.&#160;These&#160;come&#160;on&#160;top&#160;of the&#160;</p> <p style="position:absolute;top:216px;left:196px;white-space:nowrap" class="ft014">restrictions&#160;already&#160;in&#160;place&#160;that&#160;have&#160;closed&#160;all&#160;nonessential&#160;shops&#160;and&#160;services.&#160;The&#160;new&#160;measures&#160;will&#160;hit&#160;energy&#160;</p> <p style="position:absolute;top:233px;left:196px;white-space:nowrap" class="ft014">consumption and energy&#160;production and&#160;hurt&#160;already-fragile&#160;demand for&#160;transport&#160;services.&#160;Retail sales&#160;will likely&#160;</p> <p style="position:absolute;top:250px;left:196px;white-space:nowrap" class="ft014">be&#160;a bust&#160;this&#160;month as&#160;well,&#160;partly&#160;because&#160;of&#160;the&#160;typical&#160;post-holiday&#160;slowdown&#160;in sales.&#160;</p> <p style="position:absolute;top:287px;left:196px;white-space:nowrap" class="ft035">A&#160;November&#160;to&#160;forget&#160;for&#160;Italian&#160;sales&#160;</p> <p style="position:absolute;top:304px;left:196px;white-space:nowrap" class="ft014">The&#160;November&#160;lockdown sen<a href="https://www.economy.com/economicview/geography/IITA">t&#160;</a></p> <p style="position:absolute;top:304px;left:373px;white-space:nowrap" class="ft054"><a href="https://www.economy.com/economicview/geography/IITA">Italy</a></p> <p style="position:absolute;top:304px;left:398px;white-space:nowrap" class="ft014"><a href="https://www.economy.com/economicview/geography/IITA">’</a>s&#160;retail&#160;sales&#160;tumbling.&#160;Purchases&#160;plunged&#160;by&#160;6.9%&#160;in&#160;monthly&#160;terms,&#160;fully&#160;</p> <p style="position:absolute;top:321px;left:196px;white-space:nowrap" class="ft014">erasing&#160;the&#160;0.5%&#160;gain&#160;in October.&#160;In yearly&#160;terms,&#160;retail&#160;sales&#160;plummeted by&#160;8.1%.&#160;On&#160;the&#160;upside,&#160;spending&#160;on food&#160;</p> <p style="position:absolute;top:338px;left:196px;white-space:nowrap" class="ft014">rose&#160;by&#160;1%&#160;m/m,&#160;which&#160;led sales&#160;to surge&#160;5%&#160;above&#160;year-ago levels.&#160;With&#160;restaurants&#160;and bars&#160;and nonessential&#160;</p> <p style="position:absolute;top:355px;left:196px;white-space:nowrap" class="ft014">retail&#160;closed&#160;in&#160;much&#160;of&#160;the&#160;country,&#160;consumer&#160;demand was&#160;channeled&#160;into&#160;supermarkets.&#160;The&#160;increase&#160;wasn’t&#160;</p> <p style="position:absolute;top:373px;left:196px;white-space:nowrap" class="ft014">enough&#160;to offset&#160;the&#160;13.2%&#160;drop&#160;in nonfood&#160;sales,&#160;however.&#160;Sales&#160;fell&#160;in&#160;all&#160;categories&#160;except&#160;for&#160;ICT&#160;equipment&#160;</p> <p style="position:absolute;top:390px;left:196px;white-space:nowrap" class="ft014">and tools.&#160;Unsurprisingly,&#160;sales&#160;of&#160;clothing&#160;and&#160;accessories&#160;took&#160;the&#160;biggest&#160;hit,&#160;as&#160;most&#160;consumers&#160;remain&#160;home&#160;</p> <p style="position:absolute;top:407px;left:196px;white-space:nowrap" class="ft014">bound&#160;this&#160;winter.&#160;</p> <p style="position:absolute;top:436px;left:196px;white-space:nowrap" class="ft014">Retail&#160;suffered as&#160;lockdown&#160;measures&#160;forced shops&#160;to&#160;temporarily&#160;shutter,&#160;constricting&#160;the&#160;supply&#160;channel.&#160;We&#160;</p> <p style="position:absolute;top:453px;left:196px;white-space:nowrap" class="ft014">suspect&#160;consumer&#160;demand faltered during&#160;the&#160;month&#160;as&#160;well.&#160;As&#160;the&#160;second wave&#160;of&#160;infections&#160;peaked,&#160;consumer&#160;</p> <p style="position:absolute;top:470px;left:196px;white-space:nowrap" class="ft014">sentiment&#160;in November&#160;tumbled from&#160;101.7&#160;to&#160;98.4,&#160;the&#160;lowest&#160;it&#160;had&#160;been since&#160;May’s&#160;reading&#160;of&#160;94.8.&#160;The&#160;</p> <p style="position:absolute;top:488px;left:196px;white-space:nowrap" class="ft014">situation&#160;in&#160;the&#160;labor&#160;market&#160;likely&#160;led&#160;to&#160;some&#160;precautionary&#160;savings&#160;as&#160;well;&#160;although the&#160;unemployment&#160;rate&#160;</p> <p style="position:absolute;top:505px;left:196px;white-space:nowrap" class="ft014">inched down during&#160;the&#160;month,&#160;employment&#160;continued to lag&#160;pre-pandemic&#160;levels,&#160;as&#160;did&#160;average&#160;hours&#160;worked.&#160;</p> <p style="position:absolute;top:522px;left:196px;white-space:nowrap" class="ft014">And while&#160;a&#160;short&#160;easing&#160;in restrictions&#160;and the&#160;lead-up&#160;to&#160;the&#160;holiday&#160;season likely&#160;boosted sales&#160;in December,&#160;we&#160;</p> <p style="position:absolute;top:539px;left:196px;white-space:nowrap" class="ft014">expect&#160;retail&#160;weakened&#160;over&#160;the&#160;quarter.&#160;</p> <p style="position:absolute;top:576px;left:196px;white-space:nowrap" class="ft035">Netherlands'&#160;CPI&#160;perking&#160;up&#160;</p> <p style="position:absolute;top:593px;left:196px;white-space:nowrap" class="ft014">Consumer&#160;price&#160;inflation&#160;in&#160;the&#160;Netherlands&#160;accelerated&#160;to&#160;1%&#160;y/y&#160;in&#160;December&#160;from&#160;0.8%&#160;in&#160;November.&#160;With&#160;</p> <p style="position:absolute;top:610px;left:196px;white-space:nowrap" class="ft014">December’s&#160;estimate,&#160;the CPI&#160;rose&#160;on&#160;average&#160;1.3%&#160;during&#160;2020.&#160;Household energy&#160;prices&#160;continued to&#160;weigh&#160;</p> <p style="position:absolute;top:627px;left:196px;white-space:nowrap" class="ft014">heavily&#160;on&#160;the&#160;headline&#160;rate,&#160;down 11.2%&#160;over&#160;the&#160;month.&#160;Oil&#160;price&#160;gains&#160;also&#160;eased the&#160;downward pressures&#160;</p> <p style="position:absolute;top:644px;left:196px;white-space:nowrap" class="ft014">bearing&#160;on the&#160;CPI.&#160;Motor&#160;and liquid fuel&#160;prices&#160;were&#160;down&#160;by&#160;just&#160;7.4%&#160;y/y&#160;rather&#160;than&#160;by&#160;8.9%&#160;as&#160;in&#160;the&#160;month&#160;</p> <p style="position:absolute;top:661px;left:196px;white-space:nowrap" class="ft014">before.&#160;</p> <p style="position:absolute;top:691px;left:196px;white-space:nowrap" class="ft014">Despite&#160;the&#160;gains&#160;in&#160;the&#160;price&#160;of&#160;Brent&#160;crude&#160;during&#160;December,&#160;persistently&#160;low&#160;demand has&#160;kept&#160;energy&#160;prices&#160;</p> <p style="position:absolute;top:708px;left:196px;white-space:nowrap" class="ft014">below&#160;their&#160;year-ago levels.&#160;Optimism&#160;about&#160;the&#160;new&#160;COVID-19&#160;vaccines,&#160;as&#160;well&#160;as&#160;the&#160;relative&#160;strength&#160;in&#160;the&#160;</p> <p style="position:absolute;top:725px;left:196px;white-space:nowrap" class="ft014">Chinese&#160;economy,&#160;has&#160;buoyed&#160;barrel&#160;prices&#160;in&#160;futures&#160;markets.&#160;But&#160;as&#160;long&#160;as&#160;lockdown&#160;measures&#160;persist&#160;in Europe,&#160;</p> <p style="position:absolute;top:742px;left:196px;white-space:nowrap" class="ft014">consumer&#160;energy&#160;prices&#160;will&#160;rise&#160;only&#160;slowly.&#160;The&#160;story&#160;is&#160;similar&#160;across&#160;Europe;&#160;oil&#160;and fuel&#160;prices,&#160;in particular,&#160;will&#160;</p> <p style="position:absolute;top:759px;left:196px;white-space:nowrap" class="ft014">drag&#160;down&#160;year-ago rates&#160;until&#160;March,&#160;when base&#160;effects&#160;from&#160;the&#160;spring’s&#160;slump&#160;in oil&#160;prices&#160;kick&#160;in.&#160;</p> <p style="position:absolute;top:788px;left:196px;white-space:nowrap" class="ft014">Core&#160;inflation&#160;perked up&#160;as&#160;well,&#160;with&#160;price&#160;growth&#160;in nonenergy&#160;industrial&#160;goods&#160;and services&#160;accelerating&#160;slightly.&#160;</p> <p style="position:absolute;top:806px;left:196px;white-space:nowrap" class="ft014">As&#160;elsewhere&#160;in Europe,&#160;the&#160;Netherlands'&#160;lockdown was&#160;recently&#160;extended until&#160;the&#160;end of&#160;January,&#160;meaning&#160;that&#160;</p> <p style="position:absolute;top:823px;left:196px;white-space:nowrap" class="ft014">core&#160;inflation&#160;will&#160;likely&#160;remain&#160;stable&#160;in&#160;January&#160;while&#160;the&#160;headline&#160;rate&#160;could&#160;climb&#160;following&#160;an&#160;uptick&#160;in&#160;Brent&#160;oil&#160;</p> <p style="position:absolute;top:840px;left:196px;white-space:nowrap" class="ft014">prices&#160;and&#160;a&#160;further&#160;increase&#160;in&#160;the&#160;excise&#160;tax&#160;on&#160;tobacco.&#160;</p> <p style="position:absolute;top:869px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:898px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:927px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:956px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:986px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:1015px;left:196px;white-space:nowrap" class="ft014">&#160;</p> </div> <!-- Page 15 --> <a name="15"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page15-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022015.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">15&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">The&#160;Long&#160;View&#160;</p> <p style="position:absolute;top:78px;left:97px;white-space:nowrap" class="ft031">d</p> <p style="position:absolute;top:78px;left:129px;white-space:nowrap" class="ft031">&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft016">Asia Pacific&#160;</p> <p style="position:absolute;top:112px;left:196px;white-space:nowrap" class="ft07">By&#160;Christina&#160;Zhu&#160;and&#160;Shahana Mukherjee&#160;of&#160;Moody’s&#160;Analytics&#160;</p> <p style="position:absolute;top:130px;left:196px;white-space:nowrap" class="ft07"><chron>January&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:168px;left:196px;white-space:nowrap" class="ft050">SINGAPORE&#160;</p> <p style="position:absolute;top:182px;left:196px;white-space:nowrap" class="ft07">China’s&#160;external&#160;position&#160;continued&#160;to strengthen&#160;in&#160;its&#160;recovery&#160;phase.&#160;China’s&#160;foreign&#160;trade&#160;surplus&#160;rose&#160;to&#160;</p> <p style="position:absolute;top:200px;left:196px;white-space:nowrap" class="ft07"><money>US$78.2&#160;billion</money>&#160;in&#160;December&#160;on&#160;the&#160;back&#160;of&#160;a&#160;strong&#160;18% yearly&#160;increase&#160;in&#160;exports,&#160;while&#160;imports&#160;rose&#160;by&#160;a&#160;</p> <p style="position:absolute;top:218px;left:196px;white-space:nowrap" class="ft07">more&#160;moderate&#160;6.5%.&#160;Global&#160;demand&#160;for&#160;high-tech&#160;and&#160;electrical&#160;products&#160;held&#160;strong,&#160;increasing&#160;by&#160;26.5%&#160;</p> <p style="position:absolute;top:236px;left:196px;white-space:nowrap" class="ft07">and&#160;23.1%,&#160;respectively,&#160;in&#160;December,&#160;while&#160;shipments&#160;to major&#160;markets&#160;such&#160;as&#160;the&#160;U.S.&#160;(up&#160;35%),&#160;Europe&#160;</p> <p style="position:absolute;top:254px;left:196px;white-space:nowrap" class="ft07">(up&#160;4.8%)&#160;and&#160;Japan&#160;(up&#160;8.6%)&#160;reflected&#160;notable&#160;growth&#160;in&#160;December.&#160;</p> <p style="position:absolute;top:284px;left:196px;white-space:nowrap" class="ft07">For&#160;China’s&#160;exporters,&#160;external&#160;demand&#160;remained&#160;strong&#160;even&#160;though&#160;many&#160;countries&#160;continue&#160;to struggle&#160;</p> <p style="position:absolute;top:302px;left:196px;white-space:nowrap" class="ft07">with&#160;surging&#160;new COVID-19&#160;cases&#160;following the emergence&#160;of&#160;more&#160;infectious&#160;variants&#160;of&#160;the&#160;virus.&#160;The&#160;</p> <p style="position:absolute;top:320px;left:196px;white-space:nowrap" class="ft07">optimism surrounding&#160;vaccine&#160;distribution has&#160;supported&#160;consumer&#160;sentiment&#160;and further&#160;aided demand for&#160;</p> <p style="position:absolute;top:338px;left:196px;white-space:nowrap" class="ft07">China’s&#160;exports.&#160;&#160;</p> <p style="position:absolute;top:368px;left:196px;white-space:nowrap" class="ft07">China’s&#160;exports&#160;recorded&#160;a sizeable&#160;3.6% yearly&#160;increase&#160;in&#160;2020,&#160;but&#160;most&#160;of&#160;the&#160;export&#160;gains&#160;over&#160;this&#160;</p> <p style="position:absolute;top:386px;left:196px;white-space:nowrap" class="ft07">period&#160;resulted&#160;from&#160;higher&#160;medical&#160;equipment&#160;and&#160;textile&#160;product&#160;exports,&#160;which&#160;surged&#160;by&#160;40.5% and&#160;</p> <p style="position:absolute;top:404px;left:196px;white-space:nowrap" class="ft07">29.2%,&#160;respectively,&#160;over&#160;the&#160;previous&#160;year.&#160;Furniture&#160;and&#160;home&#160;appliances&#160;also picked&#160;up&#160;in&#160;recent&#160;months,&#160;</p> <p style="position:absolute;top:422px;left:196px;white-space:nowrap" class="ft07">posting&#160;double-digit&#160;growth&#160;compared&#160;with&#160;2019.&#160;Industrial&#160;commodity&#160;shipments&#160;such&#160;as&#160;rare&#160;earths,&#160;</p> <p style="position:absolute;top:440px;left:196px;white-space:nowrap" class="ft07">petroleum,&#160;aluminium products&#160;and steel&#160;recorded the&#160;maximum declines.&#160;Imports&#160;were&#160;weaker,&#160;declining&#160;by&#160;</p> <p style="position:absolute;top:458px;left:196px;white-space:nowrap" class="ft07">1.1% in&#160;2020.&#160;However,&#160;the&#160;relatively&#160;lacklustre&#160;change&#160;was&#160;largely&#160;due&#160;to lower&#160;prices&#160;of&#160;energy&#160;products&#160;</p> <p style="position:absolute;top:476px;left:196px;white-space:nowrap" class="ft07">and&#160;industrial&#160;materials,&#160;also impacted&#160;by&#160;a slower&#160;revival&#160;in&#160;domestic&#160;demand.&#160;&#160;&#160;</p> <p style="position:absolute;top:506px;left:196px;white-space:nowrap" class="ft07">China imported&#160;significantly&#160;more&#160;agriculture&#160;products&#160;in&#160;2020&#160;for&#160;multiple&#160;reasons.&#160;Imports&#160;of&#160;meat&#160;</p> <p style="position:absolute;top:524px;left:196px;white-space:nowrap" class="ft07">including&#160;offal&#160;surged&#160;by&#160;59.6% year&#160;on&#160;year&#160;to curb&#160;surging&#160;pork&#160;prices&#160;caused&#160;by&#160;the&#160;Africa swine&#160;flu.&#160;At&#160;the&#160;</p> <p style="position:absolute;top:542px;left:196px;white-space:nowrap" class="ft07">same&#160;time,&#160;imports&#160;of&#160;grain&#160;crops&#160;and&#160;soybeans&#160;rose&#160;strongly&#160;to complement&#160;domestic&#160;supply,&#160;which&#160;was&#160;</p> <p style="position:absolute;top:560px;left:196px;white-space:nowrap" class="ft07">disrupted&#160;by&#160;the&#160;devastating&#160;flood&#160;in&#160;the&#160;summer,&#160;and&#160;to fulfil&#160;the&#160;Phase&#160;One&#160;trade&#160;deal&#160;with&#160;the&#160;U.S.&#160;&#160;</p> <p style="position:absolute;top:590px;left:196px;white-space:nowrap" class="ft07">The&#160;outlook&#160;for&#160;China’s&#160;foreign&#160;trade&#160;is&#160;relatively&#160;favourable&#160;in&#160;the&#160;near&#160;term,&#160;as&#160;external&#160;demand&#160;for&#160;medical&#160;</p> <p style="position:absolute;top:608px;left:196px;white-space:nowrap" class="ft07">products&#160;and&#160;electronics&#160;and&#160;high-tech&#160;products&#160;is&#160;expected&#160;to hold&#160;up&#160;through&#160;the&#160;new&#160;pandemic&#160;</p> <p style="position:absolute;top:626px;left:196px;white-space:nowrap" class="ft07">resurgence.&#160;However,&#160;China’s&#160;trade&#160;surplus&#160;is&#160;likely&#160;to weaken&#160;later&#160;in&#160;the&#160;year&#160;as&#160;demand&#160;for&#160;pandemic-</p> <p style="position:absolute;top:645px;left:196px;white-space:nowrap" class="ft07">related&#160;products&#160;softens&#160;and&#160;countries&#160;restore&#160;their&#160;domestic&#160;production&#160;capacity.&#160;Further,&#160;a persistently&#160;</p> <p style="position:absolute;top:663px;left:196px;white-space:nowrap" class="ft07">strong&#160;yuan&#160;can&#160;also weaken&#160;China’s&#160;export&#160;competitiveness&#160;and&#160;erode&#160;the&#160;net&#160;gains.&#160;&#160;</p> <p style="position:absolute;top:692px;left:196px;white-space:nowrap" class="ft07">Equally&#160;important,&#160;some&#160;overseas&#160;demand&#160;may&#160;shift&#160;to other&#160;competitors&#160;as&#160;early&#160;as&#160;the&#160;second&#160;half&#160;of&#160;this&#160;</p> <p style="position:absolute;top:710px;left:196px;white-space:nowrap" class="ft07">year,&#160;especially&#160;if&#160;the&#160;drive&#160;to&#160;diversify&#160;supply&#160;chain&#160;dependencies&#160;persists&#160;among&#160;global&#160;manufacturers.&#160;</p> <p style="position:absolute;top:728px;left:196px;white-space:nowrap" class="ft07">President-elect&#160;Job&#160;Biden’s&#160;stance&#160;on&#160;China tariffs&#160;will&#160;be&#160;crucial,&#160;though&#160;a phase-out,&#160;if&#160;any,&#160;is&#160;unlikely&#160;before&#160;</p> <p style="position:absolute;top:746px;left:196px;white-space:nowrap" class="ft07">the&#160;second&#160;half&#160;of&#160;the&#160;year.&#160;&#160;&#160;</p> <p style="position:absolute;top:776px;left:196px;white-space:nowrap" class="ft07">&#160;</p> </div> <!-- Page 16 --> <a name="16"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft055{font-size:-1px;font-family:Times;color:#000000;} .ft056{font-size:8px;font-family:Times;color:#000000;} .ft057{font-size:8px;line-height:16px;font-family:Times;color:#000000;} --> </style> <div id="page16-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022016.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">16&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">Ratings&#160;Round-Up&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft016">Ratings&#160;Round-Up&#160;</p> <p style="position:absolute;top:113px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:132px;left:196px;white-space:nowrap" class="ft042">U.S.&#160;Changes&#160;Continue a&#160;Positive Trend&#160;</p> <p style="position:absolute;top:157px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:176px;left:196px;white-space:nowrap" class="ft07">By&#160;Michael&#160;Ferlez&#160;</p> <p style="position:absolute;top:194px;left:196px;white-space:nowrap" class="ft07"><chron>January&#160;14, 2021</chron>&#160;</p> <p style="position:absolute;top:213px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:232px;left:196px;white-space:nowrap" class="ft07">U.S.&#160;rating&#160;change&#160;activity&#160;continued&#160;its&#160;positive&#160;trend.&#160;For&#160;the&#160;week&#160;ended&#160;January&#160;12,&#160;upgrades&#160;accounted&#160;</p> <p style="position:absolute;top:251px;left:196px;white-space:nowrap" class="ft07">for&#160;roughly&#160;two-thirds&#160;of&#160;the&#160;weeks&#160;rating&#160;changes&#160;and&#160;affected&#160;debt.&#160;All&#160;rating&#160;changes&#160;during&#160;the&#160;period&#160;</p> <p style="position:absolute;top:269px;left:196px;white-space:nowrap" class="ft07">were&#160;to speculative-grade&#160;companies,&#160;with&#160;energy-related&#160;firms&#160;accounting&#160;for&#160;the&#160;largest&#160;share&#160;of&#160;rating&#160;</p> <p style="position:absolute;top:288px;left:196px;white-space:nowrap" class="ft07">changes.&#160;The&#160;most&#160;notable&#160;upgrade&#160;was&#160;made&#160;to <org>Antero Resources&#160;Corp</org>.,&#160;which&#160;saw its&#160;corporate&#160;family&#160;</p> <p style="position:absolute;top:307px;left:196px;white-space:nowrap" class="ft07">rating&#160;and&#160;senior&#160;unsecured&#160;credit&#160;rating&#160;upgraded&#160;to B1&#160;and&#160;B2,&#160;respectively.&#160;In&#160;Moody’s&#160;Investors&#160;Service&#160;</p> <p style="position:absolute;top:326px;left:196px;white-space:nowrap" class="ft07">rating&#160;action,&#160;Sajjad&#160;Alam,&#160;a Moody's&#160;Senior&#160;Analyst,&#160;was&#160;cited&#160;as&#160;saying,&#160;“The&#160;upgrade&#160;reflects&#160;Antero's&#160;</p> <p style="position:absolute;top:345px;left:196px;white-space:nowrap" class="ft07">substantially&#160;reduced&#160;refinancing&#160;risks&#160;as&#160;well&#160;as&#160;its&#160;improved&#160;free&#160;cash&#160;flow generation&#160;and&#160;debt&#160;reduction&#160;</p> <p style="position:absolute;top:363px;left:196px;white-space:nowrap" class="ft07">prospects&#160;following&#160;a recovery&#160;in&#160;commodity&#160;prices.&#34;&#160;Meanwhile,&#160;downgrades&#160;were&#160;headlined&#160;by&#160;Ferrellgas&#160;</p> <p style="position:absolute;top:382px;left:196px;white-space:nowrap" class="ft07">L.P.&#160;Moody’s&#160;Investors&#160;Service&#160;downgraded&#160;the&#160;business&#160;and&#160;consumer&#160;services&#160;company’s&#160;probability&#160;of&#160;</p> <p style="position:absolute;top:401px;left:196px;white-space:nowrap" class="ft07">default&#160;to D-PD&#160;following&#160;the&#160;announcement&#160;the&#160;firm&#160;would&#160;file&#160;for&#160;bankruptcy.&#160;Additionally,&#160;Moody’s&#160;</p> <p style="position:absolute;top:420px;left:196px;white-space:nowrap" class="ft07">Investors&#160;Service&#160;also downgrade&#160;the&#160;firm’s&#160;senior&#160;unsecured&#160;notes&#160;from&#160;Caa3&#160;to Ca,&#160;affecting&#160;<money>$2.95&#160;billion</money>&#160;in&#160;</p> <p style="position:absolute;top:439px;left:196px;white-space:nowrap" class="ft07">debt.&#160;</p> <p style="position:absolute;top:457px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:476px;left:196px;white-space:nowrap" class="ft07">European&#160;rate&#160;change&#160;activity&#160;was&#160;credit&#160;negative.&#160;Downgrades&#160;outnumbered&#160;upgrades&#160;three&#160;to one,&#160;but&#160;only&#160;</p> <p style="position:absolute;top:495px;left:196px;white-space:nowrap" class="ft07">accounted&#160;for&#160;9% of&#160;the&#160;affected&#160;debt.&#160;The&#160;United&#160;Kingdom&#160;led&#160;all&#160;countries&#160;with&#160;two rating&#160;changes,&#160;with&#160;</p> <p style="position:absolute;top:514px;left:196px;white-space:nowrap" class="ft07">Luxembourg&#160;and&#160;the&#160;Netherlands&#160;each&#160;receiving&#160;one&#160;change.&#160;The&#160;most&#160;notable&#160;change&#160;was&#160;to&#160;Fiat&#160;Chrysler&#160;</p> <p style="position:absolute;top:532px;left:196px;white-space:nowrap" class="ft07">Automobiles N.V.&#160;The Netherlands-based&#160;automaker&#160;saw its&#160;senior&#160;credit&#160;rating&#160;upgraded&#160;to Baa3&#160;from&#160;Ba2.&#160;</p> <p style="position:absolute;top:551px;left:196px;white-space:nowrap" class="ft07">The&#160;firm&#160;recently&#160;announced&#160;it&#160;would&#160;change&#160;its&#160;name&#160;to Stellantis&#160;N.V.&#160;after&#160;its&#160;merger&#160;with&#160;Peugeot&#160;S.A.&#160;</p> <p style="position:absolute;top:570px;left:196px;white-space:nowrap" class="ft07">was&#160;approved&#160;by&#160;both&#160;firms’&#160;shareholders.&#160;In&#160;Moody’s&#160;Investors&#160;Service&#160;rating&#160;action,&#160;Matthias&#160;Heck,&#160;a&#160;</p> <p style="position:absolute;top:589px;left:196px;white-space:nowrap" class="ft07">Moody's&#160;Vice&#160;President—Senior&#160;Credit&#160;Officer&#160;and&#160;Lead&#160;Analyst&#160;for&#160;FCA,&#160;PSA&#160;and&#160;Stellantis&#160;was&#160;cited&#160;saying,&#160;</p> <p style="position:absolute;top:608px;left:196px;white-space:nowrap" class="ft07">“The&#160;assigned&#160;Baa3&#160;issuer&#160;rating on&#160;FCA&#160;reflects&#160;the&#160;expected&#160;closing of&#160;the merger&#160;between&#160;FCA&#160;and&#160;PSA&#160;to&#160;</p> <p style="position:absolute;top:626px;left:196px;white-space:nowrap" class="ft07">create&#160;Stellantis,&#160;a larger&#160;and&#160;more&#160;diversified&#160;entity&#160;with&#160;significant&#160;synergy&#160;potential.&#34;&#160;The&#160;upgrade&#160;affected&#160;</p> <p style="position:absolute;top:645px;left:196px;white-space:nowrap" class="ft07"><money>$10&#160;billion</money> in outstanding&#160;debt.&#160;</p> <p style="position:absolute;top:664px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1066px;left:826px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1081px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:682px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:706px;left:197px;white-space:nowrap" class="ft036">FIGURE&#160;1&#160;</p> <p style="position:absolute;top:719px;left:197px;white-space:nowrap" class="ft07">Rating&#160;Changes&#160;-&#160;US&#160;Corporate&#160;&amp;&#160;Financial&#160;Institutions:&#160;Favorable&#160;as&#160;%&#160;of&#160;Total&#160;Actions&#160;</p> <p style="position:absolute;top:1039px;left:824px;white-space:nowrap" class="ft036">&#160;</p> <p style="position:absolute;top:1050px;left:197px;white-space:nowrap" class="ft055"><i>&#160;</i></p> <p style="position:absolute;top:1051px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:978px;left:798px;white-space:nowrap" class="ft05">0.0</p> <p style="position:absolute;top:938px;left:798px;white-space:nowrap" class="ft05">0.2</p> <p style="position:absolute;top:898px;left:798px;white-space:nowrap" class="ft05">0.4</p> <p style="position:absolute;top:858px;left:798px;white-space:nowrap" class="ft05">0.6</p> <p style="position:absolute;top:818px;left:798px;white-space:nowrap" class="ft05">0.8</p> <p style="position:absolute;top:778px;left:798px;white-space:nowrap" class="ft05">1.0</p> <p style="position:absolute;top:978px;left:211px;white-space:nowrap" class="ft05">0.0</p> <p style="position:absolute;top:938px;left:211px;white-space:nowrap" class="ft05">0.2</p> <p style="position:absolute;top:898px;left:211px;white-space:nowrap" class="ft05">0.4</p> <p style="position:absolute;top:858px;left:211px;white-space:nowrap" class="ft05">0.6</p> <p style="position:absolute;top:818px;left:211px;white-space:nowrap" class="ft05">0.8</p> <p style="position:absolute;top:778px;left:212px;white-space:nowrap" class="ft05">1.0</p> <p style="position:absolute;top:992px;left:225px;white-space:nowrap" class="ft05">Jul01</p> <p style="position:absolute;top:992px;left:313px;white-space:nowrap" class="ft05">Sep04</p> <p style="position:absolute;top:992px;left:404px;white-space:nowrap" class="ft05">Nov07</p> <p style="position:absolute;top:992px;left:499px;white-space:nowrap" class="ft05">Jan11</p> <p style="position:absolute;top:992px;left:587px;white-space:nowrap" class="ft05">Mar14</p> <p style="position:absolute;top:992px;left:678px;white-space:nowrap" class="ft05">May17</p> <p style="position:absolute;top:992px;left:773px;white-space:nowrap" class="ft05">Jul20</p> <p style="position:absolute;top:754px;left:375px;white-space:nowrap" class="ft01">By&#160;Count&#160;of&#160;Actions</p> <p style="position:absolute;top:754px;left:519px;white-space:nowrap" class="ft01">By&#160;Amount&#160;of&#160;Debt&#160;Affected</p> <p style="position:absolute;top:1014px;left:203px;white-space:nowrap" class="ft057">*&#160;Trailing&#160;3-month&#160;&#160;average<br/><i>Source:&#160;Moody's</i></p> </div> <!-- Page 17 --> <a name="17"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft058{font-size:11px;font-family:Times;color:#4aacc5;} .ft059{font-size:11px;font-family:Times;color:#000000;} --> </style> <div id="page17-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022017.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">17&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">Ratings&#160;Round-Up&#160;</p> <p style="position:absolute;top:369px;left:826px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:384px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:87px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:111px;left:197px;white-space:nowrap" class="ft036">FIGURE&#160;2&#160;</p> <p style="position:absolute;top:124px;left:197px;white-space:nowrap" class="ft07">Rating&#160;Key&#160;</p> <p style="position:absolute;top:343px;left:824px;white-space:nowrap" class="ft036">&#160;</p> <p style="position:absolute;top:354px;left:197px;white-space:nowrap" class="ft055"><i>&#160;</i></p> <p style="position:absolute;top:354px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:145px;left:220px;white-space:nowrap" class="ft058">BCF</p> <p style="position:absolute;top:145px;left:268px;white-space:nowrap" class="ft059">Bank&#160;Credit&#160;Facility&#160;Rating</p> <p style="position:absolute;top:145px;left:544px;white-space:nowrap" class="ft058">MM</p> <p style="position:absolute;top:145px;left:592px;white-space:nowrap" class="ft059">Money-Market</p> <p style="position:absolute;top:164px;left:220px;white-space:nowrap" class="ft058">CFR</p> <p style="position:absolute;top:164px;left:268px;white-space:nowrap" class="ft059">Corporate&#160;Family&#160;Rating</p> <p style="position:absolute;top:164px;left:542px;white-space:nowrap" class="ft058">MTN</p> <p style="position:absolute;top:164px;left:592px;white-space:nowrap" class="ft059">MTN&#160;Program&#160;Rating</p> <p style="position:absolute;top:183px;left:223px;white-space:nowrap" class="ft058">CP</p> <p style="position:absolute;top:183px;left:268px;white-space:nowrap" class="ft059">Commercial&#160;Paper&#160;Rating</p> <p style="position:absolute;top:183px;left:538px;white-space:nowrap" class="ft058">Notes</p> <p style="position:absolute;top:183px;left:592px;white-space:nowrap" class="ft059">Notes</p> <p style="position:absolute;top:202px;left:221px;white-space:nowrap" class="ft058">FSR</p> <p style="position:absolute;top:202px;left:268px;white-space:nowrap" class="ft059">Bank&#160;Financial&#160;Strength&#160;Rating</p> <p style="position:absolute;top:202px;left:544px;white-space:nowrap" class="ft058">PDR</p> <p style="position:absolute;top:202px;left:592px;white-space:nowrap" class="ft059">Probability&#160;of Default&#160;Rating</p> <p style="position:absolute;top:221px;left:222px;white-space:nowrap" class="ft058">IFS</p> <p style="position:absolute;top:221px;left:268px;white-space:nowrap" class="ft059">Insurance&#160;Financial&#160;Strength&#160;Rating</p> <p style="position:absolute;top:221px;left:549px;white-space:nowrap" class="ft058">PS</p> <p style="position:absolute;top:221px;left:592px;white-space:nowrap" class="ft059">Preferred&#160;Stock&#160;Rating</p> <p style="position:absolute;top:240px;left:225px;white-space:nowrap" class="ft058">IR</p> <p style="position:absolute;top:240px;left:268px;white-space:nowrap" class="ft059">Issuer&#160;Rating</p> <p style="position:absolute;top:240px;left:541px;white-space:nowrap" class="ft058">SGLR</p> <p style="position:absolute;top:240px;left:592px;white-space:nowrap" class="ft059">Speculative-Grade&#160;Liquidity&#160;Rating</p> <p style="position:absolute;top:259px;left:216px;white-space:nowrap" class="ft058">JrSub</p> <p style="position:absolute;top:259px;left:268px;white-space:nowrap" class="ft059">Junior&#160;Subordinated&#160;Rating</p> <p style="position:absolute;top:259px;left:541px;white-space:nowrap" class="ft058">SLTD</p> <p style="position:absolute;top:259px;left:592px;white-space:nowrap" class="ft059">Short-&#160;and&#160;Long-Term&#160;Deposit Rating</p> <p style="position:absolute;top:278px;left:219px;white-space:nowrap" class="ft058">LGD</p> <p style="position:absolute;top:278px;left:268px;white-space:nowrap" class="ft059">Loss Given&#160;Default&#160;Rating</p> <p style="position:absolute;top:278px;left:540px;white-space:nowrap" class="ft058">SrSec</p> <p style="position:absolute;top:278px;left:592px;white-space:nowrap" class="ft059">Senior&#160;Secured&#160;Rating&#160;</p> <p style="position:absolute;top:297px;left:217px;white-space:nowrap" class="ft058">LTCF</p> <p style="position:absolute;top:297px;left:268px;white-space:nowrap" class="ft059">Long-Term&#160;Corporate&#160;Family&#160;Rating</p> <p style="position:absolute;top:297px;left:532px;white-space:nowrap" class="ft058">SrUnsec</p> <p style="position:absolute;top:297px;left:592px;white-space:nowrap" class="ft059">Senior&#160;Unsecured&#160;Rating&#160;</p> <p style="position:absolute;top:315px;left:220px;white-space:nowrap" class="ft058">LTD</p> <p style="position:absolute;top:315px;left:268px;white-space:nowrap" class="ft059">Long-Term&#160;Deposit&#160;Rating</p> <p style="position:absolute;top:315px;left:538px;white-space:nowrap" class="ft058">SrSub</p> <p style="position:absolute;top:315px;left:592px;white-space:nowrap" class="ft059">Senior&#160;Subordinated</p> <p style="position:absolute;top:334px;left:219px;white-space:nowrap" class="ft058">LTIR</p> <p style="position:absolute;top:334px;left:268px;white-space:nowrap" class="ft059">Long-Term&#160;Issuer Rating</p> <p style="position:absolute;top:334px;left:544px;white-space:nowrap" class="ft058">STD</p> <p style="position:absolute;top:334px;left:592px;white-space:nowrap" class="ft059">Short-Term&#160;Deposit Rating</p> </div> <!-- Page 18 --> <a name="18"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft060{font-size:10px;font-family:Times;color:#4aacc5;} .ft061{font-size:10px;font-family:Times;color:#333333;} .ft062{font-size:8px;font-family:Times;color:#333333;} .ft063{font-size:9px;font-family:Times;color:#4aacc5;} .ft064{font-size:9px;font-family:Times;color:#333333;} .ft065{font-size:7px;font-family:Times;color:#333333;} .ft066{font-size:10px;line-height:15px;font-family:Times;color:#333333;} --> </style> <div id="page18-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022018.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">18&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:65px;white-space:nowrap" class="ft031">Ratings&#160;Round-Up&#160;</p> <p style="position:absolute;top:771px;left:824px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:786px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:93px;left:197px;white-space:nowrap" class="ft036">FIGURE&#160;3&#160;</p> <p style="position:absolute;top:106px;left:197px;white-space:nowrap" class="ft07">Rating&#160;Changes:&#160;Corporate&#160;&amp;&#160;Financial&#160;Institutions&#160;–&#160;US&#160;</p> <p style="position:absolute;top:718px;left:823px;white-space:nowrap" class="ft036">&#160;</p> <p style="position:absolute;top:728px;left:197px;white-space:nowrap" class="ft055"><i>&#160;</i></p> <p style="position:absolute;top:730px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:748px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:766px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:147px;left:210px;white-space:nowrap" class="ft060">Date</p> <p style="position:absolute;top:147px;left:326px;white-space:nowrap" class="ft060">Company</p> <p style="position:absolute;top:147px;left:462px;white-space:nowrap" class="ft060">Sector</p> <p style="position:absolute;top:147px;left:545px;white-space:nowrap" class="ft060">Rating</p> <p style="position:absolute;top:139px;left:628px;white-space:nowrap" class="ft060">Amount&#160; &#160;</p> <p style="position:absolute;top:154px;left:621px;white-space:nowrap" class="ft060">($&#160;Million)</p> <p style="position:absolute;top:139px;left:685px;white-space:nowrap" class="ft060">Up/&#160;</p> <p style="position:absolute;top:154px;left:680px;white-space:nowrap" class="ft060">Down</p> <p style="position:absolute;top:131px;left:722px;white-space:nowrap" class="ft060">Old&#160;</p> <p style="position:absolute;top:147px;left:721px;white-space:nowrap" class="ft060">LTD&#160;</p> <p style="position:absolute;top:162px;left:714px;white-space:nowrap" class="ft060">Rating</p> <p style="position:absolute;top:131px;left:757px;white-space:nowrap" class="ft060">New&#160;</p> <p style="position:absolute;top:147px;left:759px;white-space:nowrap" class="ft060">LTD&#160;</p> <p style="position:absolute;top:162px;left:752px;white-space:nowrap" class="ft060">Rating</p> <p style="position:absolute;top:147px;left:790px;white-space:nowrap" class="ft060">IG/SG</p> <p style="position:absolute;top:192px;left:207px;white-space:nowrap" class="ft061">1/6/21&#160;REALOGY&#160;GROUP&#160;LLC</p> <p style="position:absolute;top:192px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:192px;left:537px;white-space:nowrap" class="ft061">SrSec/BCF</p> <p style="position:absolute;top:192px;left:639px;white-space:nowrap" class="ft061">550</p> <p style="position:absolute;top:192px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:192px;left:722px;white-space:nowrap" class="ft061">Ba3</p> <p style="position:absolute;top:192px;left:759px;white-space:nowrap" class="ft061">Ba2</p> <p style="position:absolute;top:192px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:228px;left:207px;white-space:nowrap" class="ft061"><chron>1/6/21</chron></p> <p style="position:absolute;top:220px;left:250px;white-space:nowrap" class="ft066">CAMPING&#160;WORLD&#160;HOLDINGS&#160;INC.&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160;<br/>-<org>CWGS ENTERPRISES,&#160;LLC</org></p> <p style="position:absolute;top:228px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:220px;left:537px;white-space:nowrap" class="ft061">SrSec/BCF&#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160;&#160;</p> <p style="position:absolute;top:235px;left:520px;white-space:nowrap" class="ft061">/LTCFR/PDR/LGD</p> <p style="position:absolute;top:228px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:228px;left:725px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:228px;left:763px;white-space:nowrap" class="ft061">B1</p> <p style="position:absolute;top:228px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:263px;left:208px;white-space:nowrap" class="ft061"><chron>1/7/21</chron></p> <p style="position:absolute;top:256px;left:250px;white-space:nowrap" class="ft066">MHE&#160;US&#160;HOLDINGS,&#160;LLC &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<br/>-<org>MCGRAW&#160;HILL LLC</org></p> <p style="position:absolute;top:263px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:256px;left:527px;white-space:nowrap" class="ft061">SrSec/SrUnsec&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160;</p> <p style="position:absolute;top:271px;left:521px;white-space:nowrap" class="ft061">/BCF/LTCFR/PDR</p> <p style="position:absolute;top:263px;left:640px;white-space:nowrap" class="ft061">741</p> <p style="position:absolute;top:263px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:263px;left:718px;white-space:nowrap" class="ft061">Caa3&#160;Caa2</p> <p style="position:absolute;top:263px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:299px;left:207px;white-space:nowrap" class="ft061"><chron>1/8/21</chron></p> <p style="position:absolute;top:291px;left:250px;white-space:nowrap" class="ft066">GENWORTH&#160;FINANCIAL&#160;INC&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;<br/>-GENWORTH HOLDINGS,&#160;INC.</p> <p style="position:absolute;top:299px;left:457px;white-space:nowrap" class="ft061">Financial</p> <p style="position:absolute;top:299px;left:527px;white-space:nowrap" class="ft061">SrUnsec/JrSub</p> <p style="position:absolute;top:299px;left:691px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:299px;left:724px;white-space:nowrap" class="ft061">B3</p> <p style="position:absolute;top:299px;left:757px;white-space:nowrap" class="ft061">Caa1</p> <p style="position:absolute;top:299px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:334px;left:207px;white-space:nowrap" class="ft061"><chron>1/8/21</chron></p> <p style="position:absolute;top:327px;left:250px;white-space:nowrap" class="ft066">AIP/HARDWOODS&#160;FUNDING,&#160;INC.&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160;&#160;<br/>-NORTHWEST&#160;HARDWOODS,&#160;INC.</p> <p style="position:absolute;top:334px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:334px;left:552px;white-space:nowrap" class="ft061">PDR</p> <p style="position:absolute;top:334px;left:691px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:334px;left:727px;white-space:nowrap" class="ft061">C</p> <p style="position:absolute;top:334px;left:764px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:334px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:370px;left:207px;white-space:nowrap" class="ft061">1/8/21&#160;VINE&#160;OIL&#160;&amp;&#160;GAS,&#160;LP</p> <p style="position:absolute;top:370px;left:456px;white-space:nowrap" class="ft061">Industrial&#160;SrUnsec/LTCFR/PDR</p> <p style="position:absolute;top:370px;left:639px;white-space:nowrap" class="ft061">910</p> <p style="position:absolute;top:370px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:370px;left:725px;white-space:nowrap" class="ft061">Ca</p> <p style="position:absolute;top:370px;left:756px;white-space:nowrap" class="ft061">Caa2</p> <p style="position:absolute;top:370px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:406px;left:207px;white-space:nowrap" class="ft061"><chron>1/8/21</chron></p> <p style="position:absolute;top:398px;left:250px;white-space:nowrap" class="ft066">RIVERBED&#160;PARENT,&#160;INC.&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160;<br/>-RIVERBED&#160;TECHNOLOGY,&#160;INC.</p> <p style="position:absolute;top:406px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:406px;left:530px;white-space:nowrap" class="ft061">SrUnsec/PDR</p> <p style="position:absolute;top:406px;left:635px;white-space:nowrap" class="ft061">1,050</p> <p style="position:absolute;top:406px;left:691px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:406px;left:718px;white-space:nowrap" class="ft061">Caa3</p> <p style="position:absolute;top:406px;left:762px;white-space:nowrap" class="ft061">Ca</p> <p style="position:absolute;top:406px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:441px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;FERRELL&#160;COMPANIES-FERRELLGAS,&#160;L.P.&#160;Industrial</p> <p style="position:absolute;top:441px;left:530px;white-space:nowrap" class="ft061">SrUnsec/PDR</p> <p style="position:absolute;top:441px;left:634px;white-space:nowrap" class="ft061">2,950</p> <p style="position:absolute;top:441px;left:691px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:441px;left:718px;white-space:nowrap" class="ft061">Caa3</p> <p style="position:absolute;top:441px;left:762px;white-space:nowrap" class="ft061">Ca</p> <p style="position:absolute;top:441px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:477px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;LIFE&#160;TIME,&#160;INC.</p> <p style="position:absolute;top:477px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:469px;left:527px;white-space:nowrap" class="ft061">SrUnsec/SrSec&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160;</p> <p style="position:absolute;top:484px;left:521px;white-space:nowrap" class="ft061">/BCF/LTCFR/PDR</p> <p style="position:absolute;top:477px;left:638px;white-space:nowrap" class="ft061">450</p> <p style="position:absolute;top:477px;left:691px;white-space:nowrap" class="ft061">D</p> <p style="position:absolute;top:477px;left:719px;white-space:nowrap" class="ft061">Caa2&#160;Caa3</p> <p style="position:absolute;top:477px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:512px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;ANTERO&#160;RESOURCES&#160;CORPORATION</p> <p style="position:absolute;top:512px;left:456px;white-space:nowrap" class="ft061">Industrial&#160;SrUnsec/LTCFR/PDR</p> <p style="position:absolute;top:512px;left:635px;white-space:nowrap" class="ft061">2,773</p> <p style="position:absolute;top:512px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:512px;left:724px;white-space:nowrap" class="ft061">B3</p> <p style="position:absolute;top:512px;left:762px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:512px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:548px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;THOR&#160;INDUSTRIES,&#160;INC.</p> <p style="position:absolute;top:548px;left:456px;white-space:nowrap" class="ft061">Industrial&#160;SrSec/BCF/LTCFR/PDR</p> <p style="position:absolute;top:548px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:548px;left:725px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:548px;left:759px;white-space:nowrap" class="ft061">Ba3</p> <p style="position:absolute;top:548px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:583px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;WINNEBAGO&#160;INDUSTRIES, INC.</p> <p style="position:absolute;top:583px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:583px;left:519px;white-space:nowrap" class="ft061">SrSec/LTCFR/PDR</p> <p style="position:absolute;top:583px;left:638px;white-space:nowrap" class="ft061">300</p> <p style="position:absolute;top:583px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:583px;left:725px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:583px;left:763px;white-space:nowrap" class="ft061">B1</p> <p style="position:absolute;top:583px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:620px;left:205px;white-space:nowrap" class="ft061">1/11/21&#160;<org>ANTERO&#160;MIDSTREAM&#160;PARTNERS LP</org></p> <p style="position:absolute;top:620px;left:456px;white-space:nowrap" class="ft061">Industrial&#160;SrUnsec/LTCFR/PDR</p> <p style="position:absolute;top:620px;left:634px;white-space:nowrap" class="ft061">2,500</p> <p style="position:absolute;top:620px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:620px;left:724px;white-space:nowrap" class="ft061">B3</p> <p style="position:absolute;top:620px;left:762px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:620px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:656px;left:205px;white-space:nowrap" class="ft061"><chron>1/11/21</chron></p> <p style="position:absolute;top:648px;left:250px;white-space:nowrap" class="ft066">UTZ&#160;BRANDS&#160;HOLDINGS,&#160;LLC &#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;<br/>-UTZ&#160;QUALITY&#160;FOODS,&#160;LLC</p> <p style="position:absolute;top:656px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:656px;left:537px;white-space:nowrap" class="ft061">SrSec/BCF</p> <p style="position:absolute;top:656px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:656px;left:725px;white-space:nowrap" class="ft061">B2</p> <p style="position:absolute;top:656px;left:763px;white-space:nowrap" class="ft061">B1</p> <p style="position:absolute;top:656px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:689px;left:205px;white-space:nowrap" class="ft061"><chron>1/12/21</chron></p> <p style="position:absolute;top:682px;left:250px;white-space:nowrap" class="ft066">PAREXEL&#160;INTERNATIONAL&#160;<br/>CORPORATION</p> <p style="position:absolute;top:689px;left:456px;white-space:nowrap" class="ft061">Industrial</p> <p style="position:absolute;top:682px;left:527px;white-space:nowrap" class="ft061">SrUnsec/SrSec&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160;</p> <p style="position:absolute;top:697px;left:522px;white-space:nowrap" class="ft061">/BCf/LTCFR/PDR</p> <p style="position:absolute;top:689px;left:639px;white-space:nowrap" class="ft061">770</p> <p style="position:absolute;top:689px;left:691px;white-space:nowrap" class="ft061">U</p> <p style="position:absolute;top:689px;left:719px;white-space:nowrap" class="ft061">Caa2&#160;Caa1</p> <p style="position:absolute;top:689px;left:798px;white-space:nowrap" class="ft061">SG</p> <p style="position:absolute;top:714px;left:199px;white-space:nowrap" class="ft062"><i>Source:&#160;Moody's</i></p> <p style="position:absolute;top:807px;left:197px;white-space:nowrap" class="ft036">FIGURE&#160;4&#160;</p> <p style="position:absolute;top:820px;left:197px;white-space:nowrap" class="ft07">Rating&#160;Changes:&#160;Corporate&#160;&amp;&#160;Financial&#160;Institutions&#160;–&#160;Europe&#160;</p> <p style="position:absolute;top:1023px;left:823px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1038px;left:197px;white-space:nowrap" class="ft055"><i>&#160;</i></p> <p style="position:absolute;top:1040px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:860px;left:212px;white-space:nowrap" class="ft063">Date</p> <p style="position:absolute;top:860px;left:313px;white-space:nowrap" class="ft063">Company</p> <p style="position:absolute;top:860px;left:433px;white-space:nowrap" class="ft063">Sector</p> <p style="position:absolute;top:860px;left:500px;white-space:nowrap" class="ft063">Rating</p> <p style="position:absolute;top:853px;left:567px;white-space:nowrap" class="ft063">Amount&#160; &#160;</p> <p style="position:absolute;top:867px;left:561px;white-space:nowrap" class="ft063">($&#160;Million)</p> <p style="position:absolute;top:853px;left:622px;white-space:nowrap" class="ft063">Up/&#160;</p> <p style="position:absolute;top:867px;left:617px;white-space:nowrap" class="ft063">Down</p> <p style="position:absolute;top:846px;left:656px;white-space:nowrap" class="ft063">Old&#160;</p> <p style="position:absolute;top:860px;left:656px;white-space:nowrap" class="ft063">LTD&#160;</p> <p style="position:absolute;top:874px;left:650px;white-space:nowrap" class="ft063">Rating</p> <p style="position:absolute;top:846px;left:689px;white-space:nowrap" class="ft063">New&#160;</p> <p style="position:absolute;top:860px;left:690px;white-space:nowrap" class="ft063">LTD&#160;</p> <p style="position:absolute;top:874px;left:684px;white-space:nowrap" class="ft063">Rating</p> <p style="position:absolute;top:860px;left:719px;white-space:nowrap" class="ft063">IG/SG</p> <p style="position:absolute;top:860px;left:767px;white-space:nowrap" class="ft063">Country</p> <p style="position:absolute;top:903px;left:209px;white-space:nowrap" class="ft064"><chron>1/7/21</chron></p> <p style="position:absolute;top:903px;left:251px;white-space:nowrap" class="ft064">TECHNIPFMC&#160;PLC</p> <p style="position:absolute;top:903px;left:427px;white-space:nowrap" class="ft064">Industrial&#160;SrUnsec/LTIR/CP</p> <p style="position:absolute;top:903px;left:574px;white-space:nowrap" class="ft064">1,052</p> <p style="position:absolute;top:903px;left:627px;white-space:nowrap" class="ft064">D</p> <p style="position:absolute;top:903px;left:654px;white-space:nowrap" class="ft064">Baa2&#160;Baa3</p> <p style="position:absolute;top:903px;left:728px;white-space:nowrap" class="ft064">IG</p> <p style="position:absolute;top:896px;left:768px;white-space:nowrap" class="ft064">UNITED&#160;</p> <p style="position:absolute;top:910px;left:762px;white-space:nowrap" class="ft064">KINGDOM</p> <p style="position:absolute;top:935px;left:207px;white-space:nowrap" class="ft064">1/11/21&#160;ARVOS&#160;MIDCO&#160;S.A R.L.</p> <p style="position:absolute;top:935px;left:427px;white-space:nowrap" class="ft064">Industrial</p> <p style="position:absolute;top:928px;left:493px;white-space:nowrap" class="ft064">SrSec/BCF&#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160; &#160;&#160; &#160;&#160; &#160;&#160;&#160;</p> <p style="position:absolute;top:942px;left:488px;white-space:nowrap" class="ft064">/LTCFR/PDR</p> <p style="position:absolute;top:935px;left:627px;white-space:nowrap" class="ft064">D</p> <p style="position:absolute;top:935px;left:659px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:935px;left:689px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:935px;left:727px;white-space:nowrap" class="ft064">SG&#160;LUXEMBOURG</p> <p style="position:absolute;top:968px;left:207px;white-space:nowrap" class="ft064">1/11/21&#160;FIAT&#160;CHRYSLER&#160;AUTOMOBILES&#160;N.V.&#160;Industrial</p> <p style="position:absolute;top:968px;left:485px;white-space:nowrap" class="ft064">SrUnsec/MTN</p> <p style="position:absolute;top:968px;left:570px;white-space:nowrap" class="ft064">10,202</p> <p style="position:absolute;top:968px;left:627px;white-space:nowrap" class="ft064">U</p> <p style="position:absolute;top:968px;left:656px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:968px;left:688px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:968px;left:727px;white-space:nowrap" class="ft064">SG&#160;NETHERLANDS</p> <p style="position:absolute;top:1001px;left:207px;white-space:nowrap" class="ft064">1/11/21&#160;INEOS&#160;QUATTRO&#160;HOLDINGS&#160;LTD</p> <p style="position:absolute;top:1001px;left:427px;white-space:nowrap" class="ft064">Industrial</p> <p style="position:absolute;top:1001px;left:490px;white-space:nowrap" class="ft064">LTCFR/PDR</p> <p style="position:absolute;top:1001px;left:627px;white-space:nowrap" class="ft064">D</p> <p style="position:absolute;top:1001px;left:656px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:1001px;left:691px;white-space:nowrap" class="ft064">Ba3</p> <p style="position:absolute;top:1001px;left:727px;white-space:nowrap" class="ft064">SG</p> <p style="position:absolute;top:994px;left:768px;white-space:nowrap" class="ft064">UNITED&#160;</p> <p style="position:absolute;top:1008px;left:762px;white-space:nowrap" class="ft064">KINGDOM</p> <p style="position:absolute;top:1025px;left:199px;white-space:nowrap" class="ft065"><i>Source:&#160;Moody's</i></p> </div> <!-- Page 19 --> <a name="19"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft067{font-size:19px;font-family:Times;color:#00afef;} .ft068{font-size:16px;font-family:Times;color:#00afef;} .ft069{font-size:19px;line-height:25px;font-family:Times;color:#00afef;} .ft070{font-size:16px;line-height:22px;font-family:Times;color:#00afef;} --> </style> <div id="page19-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022019.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">19&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:60px;white-space:nowrap" class="ft031">Market Data&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft069">Market&#160;Data&#160;<br/>&#160;</p> <p style="position:absolute;top:139px;left:196px;white-space:nowrap" class="ft070">Spreads&#160;<br/>&#160;</p> <p style="position:absolute;top:453px;left:864px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:479px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:773px;left:864px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:421px;left:838px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:374px;left:838px;white-space:nowrap" class="ft05">200</p> <p style="position:absolute;top:328px;left:838px;white-space:nowrap" class="ft05">400</p> <p style="position:absolute;top:282px;left:838px;white-space:nowrap" class="ft05">600</p> <p style="position:absolute;top:236px;left:838px;white-space:nowrap" class="ft05">800</p> <p style="position:absolute;top:421px;left:218px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:374px;left:206px;white-space:nowrap" class="ft05">200</p> <p style="position:absolute;top:328px;left:206px;white-space:nowrap" class="ft05">400</p> <p style="position:absolute;top:282px;left:206px;white-space:nowrap" class="ft05">600</p> <p style="position:absolute;top:236px;left:206px;white-space:nowrap" class="ft05">800</p> <p style="position:absolute;top:435px;left:222px;white-space:nowrap" class="ft05">2003&#160;2004&#160;2005&#160;2006&#160;2007&#160;2008&#160;2009&#160;2010&#160;2011&#160;2012&#160;2013&#160;2014&#160;2015&#160;2016&#160;2017&#160;2018&#160;2019&#160;2020&#160;2021</p> <p style="position:absolute;top:217px;left:200px;white-space:nowrap" class="ft05">Spread&#160;(bp)</p> <p style="position:absolute;top:219px;left:804px;white-space:nowrap" class="ft05">Spread&#160;(bp)</p> <p style="position:absolute;top:204px;left:240px;white-space:nowrap" class="ft05">&#160;Aa2</p> <p style="position:absolute;top:204px;left:302px;white-space:nowrap" class="ft05">&#160;A2</p> <p style="position:absolute;top:204px;left:360px;white-space:nowrap" class="ft05">&#160;Baa2</p> <p style="position:absolute;top:453px;left:202px;white-space:nowrap" class="ft056"><i>Source:&#160;Moody's</i></p> <p style="position:absolute;top:186px;left:207px;white-space:nowrap" class="ft05">Figure&#160;&#160;1:&#160;5-Year&#160;&#160;Median&#160;Spreads-Global&#160;Data&#160;(High&#160;Grade)</p> <p style="position:absolute;top:741px;left:830px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:705px;left:830px;white-space:nowrap" class="ft05">400</p> <p style="position:absolute;top:669px;left:830px;white-space:nowrap" class="ft05">800</p> <p style="position:absolute;top:633px;left:830px;white-space:nowrap" class="ft05">1,200</p> <p style="position:absolute;top:597px;left:830px;white-space:nowrap" class="ft05">1,600</p> <p style="position:absolute;top:560px;left:830px;white-space:nowrap" class="ft05">2,000</p> <p style="position:absolute;top:741px;left:227px;white-space:nowrap" class="ft05">0</p> <p style="position:absolute;top:705px;left:215px;white-space:nowrap" class="ft05">400</p> <p style="position:absolute;top:669px;left:215px;white-space:nowrap" class="ft05">800</p> <p style="position:absolute;top:633px;left:209px;white-space:nowrap" class="ft05">1,200</p> <p style="position:absolute;top:597px;left:208px;white-space:nowrap" class="ft05">1,600</p> <p style="position:absolute;top:560px;left:207px;white-space:nowrap" class="ft05">2,000</p> <p style="position:absolute;top:756px;left:232px;white-space:nowrap" class="ft05">2003&#160;2004&#160;2005&#160;2006&#160;2007&#160;2008&#160;2009&#160;2010&#160;2011&#160;2012&#160;2013&#160;2014&#160;2015&#160;2016&#160;2017&#160;2018&#160;2019&#160;2020&#160;2021</p> <p style="position:absolute;top:546px;left:200px;white-space:nowrap" class="ft036">Spread&#160;(bp)</p> <p style="position:absolute;top:546px;left:812px;white-space:nowrap" class="ft036">Spread&#160;(bp)</p> <p style="position:absolute;top:532px;left:236px;white-space:nowrap" class="ft05">&#160;Ba2</p> <p style="position:absolute;top:532px;left:295px;white-space:nowrap" class="ft05">&#160;B2</p> <p style="position:absolute;top:532px;left:348px;white-space:nowrap" class="ft05">&#160;Caa-C</p> <p style="position:absolute;top:772px;left:198px;white-space:nowrap" class="ft056"><i>Source:&#160;Moody's</i></p> <p style="position:absolute;top:512px;left:205px;white-space:nowrap" class="ft05">Figure&#160;&#160;2:&#160;5-Year&#160;&#160;Median&#160;Spreads-Global&#160;&#160;Data&#160;(High&#160;&#160;Yield)</p> </div> <!-- Page 20 --> <a name="20"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft071{font-size:9px;font-family:Times;color:#528dd4;} .ft072{font-size:9px;font-family:Times;color:#333333;} .ft073{font-size:9px;line-height:17px;font-family:Times;color:#528dd4;} .ft074{font-size:9px;line-height:16px;font-family:Times;color:#528dd4;} --> </style> <div id="page20-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022020.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">20&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:60px;white-space:nowrap" class="ft031">Market Data&#160;</p> <p style="position:absolute;top:87px;left:196px;white-space:nowrap" class="ft067">CDS Movers&#160;</p> <p style="position:absolute;top:123px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:949px;left:864px;white-space:nowrap" class="ft067">&#160;</p> <p style="position:absolute;top:175px;left:199px;white-space:nowrap" class="ft073">CDS&#160;Implied&#160;Rating&#160;Rises<br/>Issuer</p> <p style="position:absolute;top:192px;left:517px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:192px;left:613px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:192px;left:687px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:207px;left:199px;white-space:nowrap" class="ft064">Merck&#160;Sharp&#160;&amp;&#160;Dohme&#160;Corp.</p> <p style="position:absolute;top:207px;left:523px;white-space:nowrap" class="ft064">Aaa</p> <p style="position:absolute;top:207px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:207px;left:715px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:222px;left:199px;white-space:nowrap" class="ft064">JPMorgan&#160;Chase&#160;Bank,&#160;N.A.</p> <p style="position:absolute;top:222px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:222px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:222px;left:712px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:237px;left:199px;white-space:nowrap" class="ft064">Toyota&#160;Motor&#160;Credit&#160;Corporation</p> <p style="position:absolute;top:237px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:237px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:237px;left:716px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:253px;left:199px;white-space:nowrap" class="ft064">Apple&#160;Inc.</p> <p style="position:absolute;top:253px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:253px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:253px;left:713px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:268px;left:199px;white-space:nowrap" class="ft064">3M Company</p> <p style="position:absolute;top:268px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:268px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:268px;left:715px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:283px;left:199px;white-space:nowrap" class="ft064"><org>Burlington Northern Santa&#160;Fe,&#160;LLC</org></p> <p style="position:absolute;top:283px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:283px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:283px;left:715px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:298px;left:199px;white-space:nowrap" class="ft064">Exelon&#160;Corporation</p> <p style="position:absolute;top:298px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:298px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:298px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:314px;left:199px;white-space:nowrap" class="ft064">Eversource&#160;Energy</p> <p style="position:absolute;top:314px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:314px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:314px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:329px;left:199px;white-space:nowrap" class="ft064">AutoZone,&#160;Inc.</p> <p style="position:absolute;top:329px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:329px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:329px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:343px;left:199px;white-space:nowrap" class="ft064">Automatic&#160;Data&#160;Processing,&#160;Inc.</p> <p style="position:absolute;top:342px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:342px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:342px;left:712px;white-space:nowrap" class="ft064">Aa3</p> <p style="position:absolute;top:374px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Implied&#160;Rating&#160;Declines<br/>Issuer</p> <p style="position:absolute;top:390px;left:517px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:390px;left:613px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:390px;left:687px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:405px;left:199px;white-space:nowrap" class="ft064">Omnicom&#160;Group,&#160;Inc.</p> <p style="position:absolute;top:405px;left:521px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:405px;left:620px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:405px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:420px;left:199px;white-space:nowrap" class="ft064"><org>Verizon Communications&#160;Inc</org>.</p> <p style="position:absolute;top:420px;left:521px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:420px;left:616px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:420px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:435px;left:199px;white-space:nowrap" class="ft064">Altria&#160;Group&#160;Inc.</p> <p style="position:absolute;top:435px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:435px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:435px;left:715px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:451px;left:199px;white-space:nowrap" class="ft064">Cox&#160;Communications,&#160;Inc.</p> <p style="position:absolute;top:451px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:451px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:451px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:466px;left:199px;white-space:nowrap" class="ft064">United&#160;Airlines,&#160;Inc.</p> <p style="position:absolute;top:466px;left:526px;white-space:nowrap" class="ft064">Ca</p> <p style="position:absolute;top:466px;left:615px;white-space:nowrap" class="ft064">Caa3</p> <p style="position:absolute;top:466px;left:713px;white-space:nowrap" class="ft064">Ba3</p> <p style="position:absolute;top:481px;left:199px;white-space:nowrap" class="ft064">Carnival&#160;Corporation</p> <p style="position:absolute;top:481px;left:520px;white-space:nowrap" class="ft064">Caa3</p> <p style="position:absolute;top:481px;left:615px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:481px;left:715px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:496px;left:199px;white-space:nowrap" class="ft064">Tyson&#160;Foods,&#160;Inc.</p> <p style="position:absolute;top:496px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:496px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:496px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:512px;left:199px;white-space:nowrap" class="ft064">National&#160;Rural&#160;Utilities&#160;Coop.&#160;Finance&#160;Corp.</p> <p style="position:absolute;top:512px;left:521px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:512px;left:620px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:512px;left:715px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:527px;left:199px;white-space:nowrap" class="ft064">Conagra&#160;Brands,&#160;Inc.</p> <p style="position:absolute;top:527px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:527px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:527px;left:710px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:541px;left:199px;white-space:nowrap" class="ft064"><org>Univision Communications&#160;Inc</org>.</p> <p style="position:absolute;top:540px;left:527px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:540px;left:621px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:540px;left:709px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:572px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Spread&#160;Increases<br/>Issuer</p> <p style="position:absolute;top:588px;left:498px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:588px;left:611px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:588px;left:707px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:588px;left:789px;white-space:nowrap" class="ft071">Spread Diff</p> <p style="position:absolute;top:603px;left:199px;white-space:nowrap" class="ft064"><org>American Airlines&#160;Group&#160;Inc</org>.</p> <p style="position:absolute;top:603px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:603px;left:615px;white-space:nowrap" class="ft064">1,329</p> <p style="position:absolute;top:603px;left:708px;white-space:nowrap" class="ft064">1,284</p> <p style="position:absolute;top:603px;left:809px;white-space:nowrap" class="ft064">46</p> <p style="position:absolute;top:618px;left:199px;white-space:nowrap" class="ft064">Carnival&#160;Corporation</p> <p style="position:absolute;top:618px;left:527px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:618px;left:617px;white-space:nowrap" class="ft064">564</p> <p style="position:absolute;top:618px;left:713px;white-space:nowrap" class="ft064">525</p> <p style="position:absolute;top:618px;left:810px;white-space:nowrap" class="ft064">39</p> <p style="position:absolute;top:634px;left:199px;white-space:nowrap" class="ft064">Rite&#160;Aid&#160;Corporation</p> <p style="position:absolute;top:634px;left:520px;white-space:nowrap" class="ft064">Caa3</p> <p style="position:absolute;top:634px;left:618px;white-space:nowrap" class="ft064">667</p> <p style="position:absolute;top:634px;left:713px;white-space:nowrap" class="ft064">641</p> <p style="position:absolute;top:634px;left:810px;white-space:nowrap" class="ft064">27</p> <p style="position:absolute;top:649px;left:199px;white-space:nowrap" class="ft064">Staples,&#160;Inc.</p> <p style="position:absolute;top:649px;left:527px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:649px;left:617px;white-space:nowrap" class="ft064">674</p> <p style="position:absolute;top:649px;left:712px;white-space:nowrap" class="ft064">647</p> <p style="position:absolute;top:649px;left:810px;white-space:nowrap" class="ft064">26</p> <p style="position:absolute;top:664px;left:199px;white-space:nowrap" class="ft064">Dish&#160;DBS&#160;Corporation</p> <p style="position:absolute;top:664px;left:527px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:664px;left:617px;white-space:nowrap" class="ft064">468</p> <p style="position:absolute;top:664px;left:711px;white-space:nowrap" class="ft064">444</p> <p style="position:absolute;top:664px;left:810px;white-space:nowrap" class="ft064">25</p> <p style="position:absolute;top:679px;left:199px;white-space:nowrap" class="ft064"><org>American Axle&#160;&amp;&#160;Manufacturing,&#160;Inc</org>.</p> <p style="position:absolute;top:679px;left:527px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:679px;left:617px;white-space:nowrap" class="ft064">388</p> <p style="position:absolute;top:679px;left:713px;white-space:nowrap" class="ft064">363</p> <p style="position:absolute;top:679px;left:810px;white-space:nowrap" class="ft064">25</p> <p style="position:absolute;top:694px;left:199px;white-space:nowrap" class="ft064">Talen&#160;Energy&#160;Supply,&#160;LLC</p> <p style="position:absolute;top:694px;left:527px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:694px;left:614px;white-space:nowrap" class="ft064">1,079</p> <p style="position:absolute;top:694px;left:708px;white-space:nowrap" class="ft064">1,059</p> <p style="position:absolute;top:694px;left:809px;white-space:nowrap" class="ft064">20</p> <p style="position:absolute;top:710px;left:199px;white-space:nowrap" class="ft064">Yum!&#160;Brands&#160;Inc.</p> <p style="position:absolute;top:710px;left:527px;white-space:nowrap" class="ft064">B1</p> <p style="position:absolute;top:710px;left:618px;white-space:nowrap" class="ft064">107</p> <p style="position:absolute;top:710px;left:715px;white-space:nowrap" class="ft064">89</p> <p style="position:absolute;top:710px;left:810px;white-space:nowrap" class="ft064">18</p> <p style="position:absolute;top:725px;left:199px;white-space:nowrap" class="ft064">Liberty&#160;Interactive&#160;LLC</p> <p style="position:absolute;top:725px;left:527px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:725px;left:617px;white-space:nowrap" class="ft064">304</p> <p style="position:absolute;top:725px;left:712px;white-space:nowrap" class="ft064">288</p> <p style="position:absolute;top:725px;left:810px;white-space:nowrap" class="ft064">16</p> <p style="position:absolute;top:739px;left:199px;white-space:nowrap" class="ft064"><org>Univision Communications&#160;Inc</org>.</p> <p style="position:absolute;top:738px;left:520px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:738px;left:617px;white-space:nowrap" class="ft064">342</p> <p style="position:absolute;top:738px;left:712px;white-space:nowrap" class="ft064">328</p> <p style="position:absolute;top:738px;left:810px;white-space:nowrap" class="ft064">14</p> <p style="position:absolute;top:770px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Spread&#160;Decreases<br/>Issuer</p> <p style="position:absolute;top:786px;left:498px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:786px;left:611px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:786px;left:707px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:786px;left:789px;white-space:nowrap" class="ft071">Spread Diff</p> <p style="position:absolute;top:801px;left:199px;white-space:nowrap" class="ft064"><org>Nabors Industries,&#160;Inc</org>.</p> <p style="position:absolute;top:801px;left:520px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:801px;left:614px;white-space:nowrap" class="ft064">1,459</p> <p style="position:absolute;top:801px;left:709px;white-space:nowrap" class="ft064">1,626</p> <p style="position:absolute;top:801px;left:805px;white-space:nowrap" class="ft064">-167</p> <p style="position:absolute;top:816px;left:199px;white-space:nowrap" class="ft064">Macy's&#160;Retail&#160;Holdings,&#160;LLC</p> <p style="position:absolute;top:816px;left:527px;white-space:nowrap" class="ft064">B1</p> <p style="position:absolute;top:816px;left:618px;white-space:nowrap" class="ft064">522</p> <p style="position:absolute;top:816px;left:713px;white-space:nowrap" class="ft064">575</p> <p style="position:absolute;top:816px;left:808px;white-space:nowrap" class="ft064">-53</p> <p style="position:absolute;top:832px;left:199px;white-space:nowrap" class="ft064">Murphy&#160;Oil&#160;Corporation</p> <p style="position:absolute;top:832px;left:524px;white-space:nowrap" class="ft064">Ba3</p> <p style="position:absolute;top:832px;left:617px;white-space:nowrap" class="ft064">334</p> <p style="position:absolute;top:832px;left:712px;white-space:nowrap" class="ft064">374</p> <p style="position:absolute;top:832px;left:807px;white-space:nowrap" class="ft064">-40</p> <p style="position:absolute;top:847px;left:199px;white-space:nowrap" class="ft064">United&#160;States&#160;Steel&#160;Corporation</p> <p style="position:absolute;top:847px;left:520px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:847px;left:617px;white-space:nowrap" class="ft064">462</p> <p style="position:absolute;top:847px;left:712px;white-space:nowrap" class="ft064">500</p> <p style="position:absolute;top:847px;left:807px;white-space:nowrap" class="ft064">-38</p> <p style="position:absolute;top:862px;left:199px;white-space:nowrap" class="ft064">Occidental&#160;Petroleum&#160;Corporation</p> <p style="position:absolute;top:862px;left:524px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:862px;left:617px;white-space:nowrap" class="ft064">349</p> <p style="position:absolute;top:862px;left:712px;white-space:nowrap" class="ft064">383</p> <p style="position:absolute;top:862px;left:807px;white-space:nowrap" class="ft064">-34</p> <p style="position:absolute;top:877px;left:199px;white-space:nowrap" class="ft064">Computer&#160;Sciences&#160;Corporation</p> <p style="position:absolute;top:877px;left:521px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:877px;left:621px;white-space:nowrap" class="ft064">79</p> <p style="position:absolute;top:877px;left:713px;white-space:nowrap" class="ft064">107</p> <p style="position:absolute;top:877px;left:808px;white-space:nowrap" class="ft064">-29</p> <p style="position:absolute;top:893px;left:199px;white-space:nowrap" class="ft064">Cameron&#160;International&#160;Corporation</p> <p style="position:absolute;top:893px;left:521px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:893px;left:620px;white-space:nowrap" class="ft064">85</p> <p style="position:absolute;top:893px;left:714px;white-space:nowrap" class="ft064">112</p> <p style="position:absolute;top:893px;left:808px;white-space:nowrap" class="ft064">-27</p> <p style="position:absolute;top:908px;left:199px;white-space:nowrap" class="ft064">Devon&#160;Energy&#160;Corporation</p> <p style="position:absolute;top:908px;left:524px;white-space:nowrap" class="ft064">Ba1</p> <p style="position:absolute;top:908px;left:618px;white-space:nowrap" class="ft064">107</p> <p style="position:absolute;top:908px;left:713px;white-space:nowrap" class="ft064">128</p> <p style="position:absolute;top:908px;left:808px;white-space:nowrap" class="ft064">-21</p> <p style="position:absolute;top:923px;left:199px;white-space:nowrap" class="ft064">Nissan&#160;Motor&#160;Acceptance&#160;Corporation</p> <p style="position:absolute;top:923px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:923px;left:617px;white-space:nowrap" class="ft064">224</p> <p style="position:absolute;top:923px;left:712px;white-space:nowrap" class="ft064">242</p> <p style="position:absolute;top:923px;left:808px;white-space:nowrap" class="ft064">-18</p> <p style="position:absolute;top:937px;left:199px;white-space:nowrap" class="ft064">Nordstrom,&#160;Inc.</p> <p style="position:absolute;top:936px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:936px;left:618px;white-space:nowrap" class="ft064">277</p> <p style="position:absolute;top:936px;left:713px;white-space:nowrap" class="ft064">295</p> <p style="position:absolute;top:936px;left:808px;white-space:nowrap" class="ft064">-18</p> <p style="position:absolute;top:953px;left:199px;white-space:nowrap" class="ft072"><i>Source:&#160;Moody's,&#160;CMA</i></p> <p style="position:absolute;top:770px;left:691px;white-space:nowrap" class="ft071">CDS&#160;Spreads&#160;</p> <p style="position:absolute;top:175px;left:532px;white-space:nowrap" class="ft071">CDS&#160;Implied Ratings</p> <p style="position:absolute;top:374px;left:532px;white-space:nowrap" class="ft071">CDS&#160;Implied Ratings</p> <p style="position:absolute;top:572px;left:691px;white-space:nowrap" class="ft071">CDS&#160;Spreads&#160;</p> <p style="position:absolute;top:154px;left:199px;white-space:nowrap" class="ft05">Figure&#160;3.&#160; CDS&#160;Movers&#160;-&#160;US&#160;(<chron>January&#160;6,&#160;2021</chron>&#160;–&#160;January&#160;13,&#160;2021)</p> </div> <!-- Page 21 --> <a name="21"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page21-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022021.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">21&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:60px;white-space:nowrap" class="ft031">Market Data&#160;</p> <p style="position:absolute;top:886px;left:864px;white-space:nowrap" class="ft067">&#160;</p> <p style="position:absolute;top:109px;left:199px;white-space:nowrap" class="ft073">CDS&#160;Implied&#160;Rating&#160;Rises<br/>Issuer</p> <p style="position:absolute;top:127px;left:516px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:127px;left:612px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:127px;left:687px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:142px;left:199px;white-space:nowrap" class="ft064"><org>ENGIE SA</org></p> <p style="position:absolute;top:142px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:142px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:142px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:157px;left:199px;white-space:nowrap" class="ft064">E.ON&#160;SE</p> <p style="position:absolute;top:157px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:157px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:157px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:172px;left:199px;white-space:nowrap" class="ft064">UBS&#160;AG</p> <p style="position:absolute;top:172px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:172px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:172px;left:711px;white-space:nowrap" class="ft064">Aa3</p> <p style="position:absolute;top:188px;left:199px;white-space:nowrap" class="ft064"><org>Telia Company&#160;AB</org></p> <p style="position:absolute;top:188px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:188px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:188px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:203px;left:199px;white-space:nowrap" class="ft064">Vattenfall&#160;AB</p> <p style="position:absolute;top:203px;left:524px;white-space:nowrap" class="ft064">Aa1</p> <p style="position:absolute;top:203px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:203px;left:714px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:218px;left:199px;white-space:nowrap" class="ft064">ENGIE&#160;Alliance</p> <p style="position:absolute;top:218px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:218px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:218px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:233px;left:199px;white-space:nowrap" class="ft064">Natixis</p> <p style="position:absolute;top:233px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:233px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:233px;left:715px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:249px;left:199px;white-space:nowrap" class="ft064">Rabobank</p> <p style="position:absolute;top:249px;left:523px;white-space:nowrap" class="ft064">Aaa</p> <p style="position:absolute;top:249px;left:617px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:249px;left:711px;white-space:nowrap" class="ft064">Aa3</p> <p style="position:absolute;top:264px;left:199px;white-space:nowrap" class="ft064">Societe Generale</p> <p style="position:absolute;top:264px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:264px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:264px;left:715px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:278px;left:199px;white-space:nowrap" class="ft064">BNP Paribas</p> <p style="position:absolute;top:277px;left:523px;white-space:nowrap" class="ft064">Aa2</p> <p style="position:absolute;top:277px;left:621px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:277px;left:711px;white-space:nowrap" class="ft064">Aa3</p> <p style="position:absolute;top:309px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Implied&#160;Rating&#160;Declines<br/>Issuer</p> <p style="position:absolute;top:325px;left:516px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:325px;left:612px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:325px;left:687px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:340px;left:199px;white-space:nowrap" class="ft064">HSBC&#160;Holdings&#160;plc</p> <p style="position:absolute;top:340px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:340px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:340px;left:714px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:355px;left:199px;white-space:nowrap" class="ft064">Bayerische Motoren&#160;Werke Aktiengesellschaft</p> <p style="position:absolute;top:355px;left:521px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:355px;left:620px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:355px;left:714px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:371px;left:199px;white-space:nowrap" class="ft064">Credit&#160;Suisse&#160;Group&#160;AG</p> <p style="position:absolute;top:371px;left:521px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:371px;left:620px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:371px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:386px;left:199px;white-space:nowrap" class="ft064"><org>Casino&#160;Guichard-Perrachon SA</org></p> <p style="position:absolute;top:386px;left:526px;white-space:nowrap" class="ft064">Ca</p> <p style="position:absolute;top:386px;left:614px;white-space:nowrap" class="ft064">Caa3</p> <p style="position:absolute;top:386px;left:710px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:401px;left:199px;white-space:nowrap" class="ft064">Credit&#160;Suisse&#160;AG</p> <p style="position:absolute;top:401px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:401px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:401px;left:711px;white-space:nowrap" class="ft064">Aa3</p> <p style="position:absolute;top:416px;left:199px;white-space:nowrap" class="ft064">Publicis&#160;Groupe&#160;S.A.</p> <p style="position:absolute;top:416px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:416px;left:615px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:416px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:432px;left:199px;white-space:nowrap" class="ft064">Eksportfinans&#160;ASA</p> <p style="position:absolute;top:432px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:432px;left:621px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:432px;left:710px;white-space:nowrap" class="ft064">Baa1</p> <p style="position:absolute;top:447px;left:199px;white-space:nowrap" class="ft064">Solvay&#160;SA</p> <p style="position:absolute;top:447px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:447px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:447px;left:710px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:462px;left:199px;white-space:nowrap" class="ft064">Proximus&#160;SA&#160;de&#160;droit&#160;public</p> <p style="position:absolute;top:462px;left:526px;white-space:nowrap" class="ft064">A3</p> <p style="position:absolute;top:462px;left:620px;white-space:nowrap" class="ft064">A2</p> <p style="position:absolute;top:462px;left:715px;white-space:nowrap" class="ft064">A1</p> <p style="position:absolute;top:476px;left:199px;white-space:nowrap" class="ft064">Deutsche Lufthansa&#160;Aktiengesellschaft</p> <p style="position:absolute;top:475px;left:527px;white-space:nowrap" class="ft064">B2</p> <p style="position:absolute;top:475px;left:621px;white-space:nowrap" class="ft064">B1</p> <p style="position:absolute;top:475px;left:712px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:507px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Spread&#160;Increases<br/>Issuer</p> <p style="position:absolute;top:523px;left:498px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:523px;left:610px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:523px;left:707px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:523px;left:789px;white-space:nowrap" class="ft071">Spread Diff</p> <p style="position:absolute;top:538px;left:199px;white-space:nowrap" class="ft064">Novafives&#160;S.A.S.</p> <p style="position:absolute;top:538px;left:520px;white-space:nowrap" class="ft064">Caa2</p> <p style="position:absolute;top:538px;left:617px;white-space:nowrap" class="ft064">790</p> <p style="position:absolute;top:538px;left:711px;white-space:nowrap" class="ft064">758</p> <p style="position:absolute;top:538px;left:810px;white-space:nowrap" class="ft064">31</p> <p style="position:absolute;top:554px;left:199px;white-space:nowrap" class="ft064"><org>Boparan Finance&#160;plc</org></p> <p style="position:absolute;top:554px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:554px;left:617px;white-space:nowrap" class="ft064">544</p> <p style="position:absolute;top:554px;left:711px;white-space:nowrap" class="ft064">524</p> <p style="position:absolute;top:554px;left:809px;white-space:nowrap" class="ft064">20</p> <p style="position:absolute;top:569px;left:199px;white-space:nowrap" class="ft064">Publicis&#160;Groupe&#160;S.A.</p> <p style="position:absolute;top:569px;left:521px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:569px;left:621px;white-space:nowrap" class="ft064">73</p> <p style="position:absolute;top:569px;left:715px;white-space:nowrap" class="ft064">59</p> <p style="position:absolute;top:569px;left:810px;white-space:nowrap" class="ft064">14</p> <p style="position:absolute;top:584px;left:199px;white-space:nowrap" class="ft064">Ardagh&#160;Packaging&#160;Finance&#160;plc</p> <p style="position:absolute;top:584px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:584px;left:618px;white-space:nowrap" class="ft064">213</p> <p style="position:absolute;top:584px;left:711px;white-space:nowrap" class="ft064">200</p> <p style="position:absolute;top:584px;left:810px;white-space:nowrap" class="ft064">13</p> <p style="position:absolute;top:599px;left:199px;white-space:nowrap" class="ft064">Deutsche Lufthansa&#160;Aktiengesellschaft</p> <p style="position:absolute;top:599px;left:524px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:599px;left:618px;white-space:nowrap" class="ft064">281</p> <p style="position:absolute;top:599px;left:712px;white-space:nowrap" class="ft064">269</p> <p style="position:absolute;top:599px;left:810px;white-space:nowrap" class="ft064">12</p> <p style="position:absolute;top:615px;left:199px;white-space:nowrap" class="ft064">Altice&#160;Finco&#160;S.A.</p> <p style="position:absolute;top:615px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:615px;left:618px;white-space:nowrap" class="ft064">371</p> <p style="position:absolute;top:615px;left:711px;white-space:nowrap" class="ft064">360</p> <p style="position:absolute;top:615px;left:811px;white-space:nowrap" class="ft064">11</p> <p style="position:absolute;top:630px;left:199px;white-space:nowrap" class="ft064"><org>TUI AG</org></p> <p style="position:absolute;top:630px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:630px;left:618px;white-space:nowrap" class="ft064">735</p> <p style="position:absolute;top:630px;left:711px;white-space:nowrap" class="ft064">724</p> <p style="position:absolute;top:630px;left:811px;white-space:nowrap" class="ft064">11</p> <p style="position:absolute;top:645px;left:199px;white-space:nowrap" class="ft064">RCI&#160;Banque</p> <p style="position:absolute;top:645px;left:521px;white-space:nowrap" class="ft064">Baa2</p> <p style="position:absolute;top:645px;left:618px;white-space:nowrap" class="ft064">176</p> <p style="position:absolute;top:645px;left:712px;white-space:nowrap" class="ft064">166</p> <p style="position:absolute;top:645px;left:810px;white-space:nowrap" class="ft064">10</p> <p style="position:absolute;top:660px;left:199px;white-space:nowrap" class="ft064">Renault&#160;S.A.</p> <p style="position:absolute;top:660px;left:524px;white-space:nowrap" class="ft064">Ba2</p> <p style="position:absolute;top:660px;left:618px;white-space:nowrap" class="ft064">172</p> <p style="position:absolute;top:660px;left:712px;white-space:nowrap" class="ft064">162</p> <p style="position:absolute;top:660px;left:810px;white-space:nowrap" class="ft064">10</p> <p style="position:absolute;top:675px;left:199px;white-space:nowrap" class="ft064"><org>Ziggo Bond&#160;Company&#160;B.V</org>.</p> <p style="position:absolute;top:674px;left:527px;white-space:nowrap" class="ft064">B3</p> <p style="position:absolute;top:674px;left:618px;white-space:nowrap" class="ft064">222</p> <p style="position:absolute;top:674px;left:712px;white-space:nowrap" class="ft064">212</p> <p style="position:absolute;top:674px;left:810px;white-space:nowrap" class="ft064">10</p> <p style="position:absolute;top:705px;left:199px;white-space:nowrap" class="ft074">CDS&#160;Spread&#160;Decreases<br/>Issuer</p> <p style="position:absolute;top:721px;left:498px;white-space:nowrap" class="ft071">Senior&#160;Ratings</p> <p style="position:absolute;top:721px;left:610px;white-space:nowrap" class="ft071"><chron>Jan.&#160;13</chron></p> <p style="position:absolute;top:721px;left:707px;white-space:nowrap" class="ft071"><chron>Jan.&#160;6</chron></p> <p style="position:absolute;top:721px;left:789px;white-space:nowrap" class="ft071">Spread Diff</p> <p style="position:absolute;top:737px;left:199px;white-space:nowrap" class="ft064">Jaguar&#160;Land&#160;Rover&#160;Automotive&#160;Plc</p> <p style="position:absolute;top:737px;left:527px;white-space:nowrap" class="ft064">B1</p> <p style="position:absolute;top:737px;left:617px;white-space:nowrap" class="ft064">493</p> <p style="position:absolute;top:737px;left:712px;white-space:nowrap" class="ft064">575</p> <p style="position:absolute;top:737px;left:807px;white-space:nowrap" class="ft064">-82</p> <p style="position:absolute;top:752px;left:199px;white-space:nowrap" class="ft064">Banca&#160;Monte&#160;dei Paschi di Siena&#160;S.p.A.</p> <p style="position:absolute;top:752px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:752px;left:618px;white-space:nowrap" class="ft064">175</p> <p style="position:absolute;top:752px;left:711px;white-space:nowrap" class="ft064">200</p> <p style="position:absolute;top:752px;left:808px;white-space:nowrap" class="ft064">-25</p> <p style="position:absolute;top:767px;left:199px;white-space:nowrap" class="ft064">Marks&#160;&amp;&#160;Spencer&#160;p.l.c.</p> <p style="position:absolute;top:767px;left:524px;white-space:nowrap" class="ft064">Ba1</p> <p style="position:absolute;top:767px;left:618px;white-space:nowrap" class="ft064">227</p> <p style="position:absolute;top:767px;left:711px;white-space:nowrap" class="ft064">245</p> <p style="position:absolute;top:767px;left:808px;white-space:nowrap" class="ft064">-19</p> <p style="position:absolute;top:782px;left:199px;white-space:nowrap" class="ft064"><org>Caixa&#160;Geral&#160;de Depositos,&#160;S.A</org>.</p> <p style="position:absolute;top:782px;left:524px;white-space:nowrap" class="ft064">Ba1</p> <p style="position:absolute;top:782px;left:620px;white-space:nowrap" class="ft064">89</p> <p style="position:absolute;top:782px;left:712px;white-space:nowrap" class="ft064">107</p> <p style="position:absolute;top:782px;left:808px;white-space:nowrap" class="ft064">-18</p> <p style="position:absolute;top:798px;left:199px;white-space:nowrap" class="ft064">METRO&#160;Finance&#160;B.V.</p> <p style="position:absolute;top:798px;left:524px;white-space:nowrap" class="ft064">Ba1</p> <p style="position:absolute;top:798px;left:621px;white-space:nowrap" class="ft064">69</p> <p style="position:absolute;top:798px;left:714px;white-space:nowrap" class="ft064">82</p> <p style="position:absolute;top:798px;left:808px;white-space:nowrap" class="ft064">-13</p> <p style="position:absolute;top:813px;left:199px;white-space:nowrap" class="ft064">Telefonica&#160;S.A.</p> <p style="position:absolute;top:813px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:813px;left:621px;white-space:nowrap" class="ft064">71</p> <p style="position:absolute;top:813px;left:714px;white-space:nowrap" class="ft064">83</p> <p style="position:absolute;top:813px;left:808px;white-space:nowrap" class="ft064">-12</p> <p style="position:absolute;top:828px;left:199px;white-space:nowrap" class="ft064">Hammerson&#160;Plc</p> <p style="position:absolute;top:828px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:828px;left:618px;white-space:nowrap" class="ft064">292</p> <p style="position:absolute;top:828px;left:712px;white-space:nowrap" class="ft064">301</p> <p style="position:absolute;top:828px;left:808px;white-space:nowrap" class="ft064">-10</p> <p style="position:absolute;top:843px;left:199px;white-space:nowrap" class="ft064">GKN&#160;Holdings&#160;Limited</p> <p style="position:absolute;top:843px;left:524px;white-space:nowrap" class="ft064">Ba1</p> <p style="position:absolute;top:843px;left:618px;white-space:nowrap" class="ft064">163</p> <p style="position:absolute;top:843px;left:712px;white-space:nowrap" class="ft064">173</p> <p style="position:absolute;top:843px;left:808px;white-space:nowrap" class="ft064">-10</p> <p style="position:absolute;top:859px;left:199px;white-space:nowrap" class="ft064">Banco&#160;Sabadell,&#160;S.A.</p> <p style="position:absolute;top:859px;left:521px;white-space:nowrap" class="ft064">Baa3</p> <p style="position:absolute;top:859px;left:621px;white-space:nowrap" class="ft064">77</p> <p style="position:absolute;top:859px;left:714px;white-space:nowrap" class="ft064">86</p> <p style="position:absolute;top:859px;left:811px;white-space:nowrap" class="ft064">-9</p> <p style="position:absolute;top:873px;left:199px;white-space:nowrap" class="ft064">Stena&#160;AB</p> <p style="position:absolute;top:872px;left:521px;white-space:nowrap" class="ft064">Caa1</p> <p style="position:absolute;top:872px;left:618px;white-space:nowrap" class="ft064">519</p> <p style="position:absolute;top:872px;left:712px;white-space:nowrap" class="ft064">527</p> <p style="position:absolute;top:872px;left:810px;white-space:nowrap" class="ft064">-8</p> <p style="position:absolute;top:889px;left:199px;white-space:nowrap" class="ft072"><i>Source:&#160;Moody's,&#160;CMA</i></p> <p style="position:absolute;top:705px;left:690px;white-space:nowrap" class="ft071">CDS&#160;Spreads&#160;</p> <p style="position:absolute;top:110px;left:531px;white-space:nowrap" class="ft071">CDS&#160;Implied Ratings</p> <p style="position:absolute;top:309px;left:531px;white-space:nowrap" class="ft071">CDS&#160;Implied Ratings</p> <p style="position:absolute;top:507px;left:690px;white-space:nowrap" class="ft071">CDS&#160;Spreads&#160;</p> <p style="position:absolute;top:88px;left:199px;white-space:nowrap" class="ft05">Figure&#160;4.&#160; CDS&#160;Movers&#160;-&#160;Europe&#160;(<chron>January&#160;6,&#160;2021</chron>&#160;–&#160;January&#160;13,&#160;2021)</p> </div> <!-- Page 22 --> <a name="22"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft075{font-size:10px;font-family:Times;color:#000000;} .ft076{font-size:12px;font-family:Times;color:#333333;} .ft077{font-size:11px;font-family:Times;color:#333333;} .ft078{font-size:14px;font-family:Times;color:#000000;} .ft079{font-size:10px;line-height:18px;font-family:Times;color:#000000;} .ft080{font-size:10px;line-height:18px;font-family:Times;color:#000000;} --> </style> <div id="page22-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022022.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">22&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:60px;white-space:nowrap" class="ft031">Market Data&#160;</p> <p style="position:absolute;top:86px;left:196px;white-space:nowrap" class="ft067">Issuance&#160;</p> <p style="position:absolute;top:116px;left:196px;white-space:nowrap" class="ft079"><i>&#160;<br/>&#160;<br/>&#160;</i></p> <p style="position:absolute;top:474px;left:864px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:490px;left:196px;white-space:nowrap" class="ft080">&#160;<br/>&#160;</p> <p style="position:absolute;top:829px;left:864px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:845px;left:196px;white-space:nowrap" class="ft075"><i>&#160;</i></p> <p style="position:absolute;top:424px;left:827px;white-space:nowrap" class="ft076">0</p> <p style="position:absolute;top:381px;left:827px;white-space:nowrap" class="ft076">700</p> <p style="position:absolute;top:339px;left:827px;white-space:nowrap" class="ft076">1,400</p> <p style="position:absolute;top:297px;left:827px;white-space:nowrap" class="ft076">2,100</p> <p style="position:absolute;top:255px;left:827px;white-space:nowrap" class="ft076">2,800</p> <p style="position:absolute;top:424px;left:224px;white-space:nowrap" class="ft076">0</p> <p style="position:absolute;top:381px;left:210px;white-space:nowrap" class="ft076">700</p> <p style="position:absolute;top:339px;left:199px;white-space:nowrap" class="ft076">1,400</p> <p style="position:absolute;top:297px;left:200px;white-space:nowrap" class="ft076">2,100</p> <p style="position:absolute;top:255px;left:198px;white-space:nowrap" class="ft076">2,800</p> <p style="position:absolute;top:442px;left:259px;white-space:nowrap" class="ft076">Jan&#160;Feb&#160;Mar</p> <p style="position:absolute;top:442px;left:368px;white-space:nowrap" class="ft076">Apr</p> <p style="position:absolute;top:442px;left:410px;white-space:nowrap" class="ft076">May</p> <p style="position:absolute;top:442px;left:468px;white-space:nowrap" class="ft076">Jun</p> <p style="position:absolute;top:442px;left:514px;white-space:nowrap" class="ft076">Jul</p> <p style="position:absolute;top:442px;left:554px;white-space:nowrap" class="ft076">Aug</p> <p style="position:absolute;top:442px;left:610px;white-space:nowrap" class="ft076">Sep</p> <p style="position:absolute;top:442px;left:665px;white-space:nowrap" class="ft076">Oct</p> <p style="position:absolute;top:442px;left:708px;white-space:nowrap" class="ft076">Nov</p> <p style="position:absolute;top:442px;left:764px;white-space:nowrap" class="ft076">Dec</p> <p style="position:absolute;top:225px;left:203px;white-space:nowrap" class="ft076">Issuance&#160;($B)</p> <p style="position:absolute;top:224px;left:783px;white-space:nowrap" class="ft076">Issuance&#160;($B)</p> <p style="position:absolute;top:224px;left:410px;white-space:nowrap" class="ft076">2018</p> <p style="position:absolute;top:224px;left:498px;white-space:nowrap" class="ft076">2019</p> <p style="position:absolute;top:224px;left:585px;white-space:nowrap" class="ft076">2020</p> <p style="position:absolute;top:224px;left:673px;white-space:nowrap" class="ft076">2021</p> <p style="position:absolute;top:465px;left:203px;white-space:nowrap" class="ft077"><i>Source:&#160;&#160;</i></p> <p style="position:absolute;top:466px;left:246px;white-space:nowrap" class="ft072"><i>Moody's&#160; /&#160;Dealogic</i></p> <p style="position:absolute;top:177px;left:210px;white-space:nowrap" class="ft078">Figure&#160;5.&#160;Market&#160;Cumulative Issuance&#160;-&#160;Corporate &amp;&#160;Financial&#160;Institutions:&#160;USD&#160;Denominated</p> <p style="position:absolute;top:783px;left:829px;white-space:nowrap" class="ft076">0</p> <p style="position:absolute;top:746px;left:829px;white-space:nowrap" class="ft076">200</p> <p style="position:absolute;top:710px;left:829px;white-space:nowrap" class="ft076">400</p> <p style="position:absolute;top:673px;left:829px;white-space:nowrap" class="ft076">600</p> <p style="position:absolute;top:636px;left:829px;white-space:nowrap" class="ft076">800</p> <p style="position:absolute;top:599px;left:829px;white-space:nowrap" class="ft076">1,000</p> <p style="position:absolute;top:783px;left:223px;white-space:nowrap" class="ft076">0</p> <p style="position:absolute;top:746px;left:208px;white-space:nowrap" class="ft076">200</p> <p style="position:absolute;top:710px;left:207px;white-space:nowrap" class="ft076">400</p> <p style="position:absolute;top:673px;left:207px;white-space:nowrap" class="ft076">600</p> <p style="position:absolute;top:636px;left:207px;white-space:nowrap" class="ft076">800</p> <p style="position:absolute;top:599px;left:198px;white-space:nowrap" class="ft076">1,000</p> <p style="position:absolute;top:802px;left:258px;white-space:nowrap" class="ft076">Jan&#160;Feb&#160;Mar</p> <p style="position:absolute;top:802px;left:369px;white-space:nowrap" class="ft076">Apr</p> <p style="position:absolute;top:802px;left:411px;white-space:nowrap" class="ft076">May</p> <p style="position:absolute;top:802px;left:470px;white-space:nowrap" class="ft076">Jun</p> <p style="position:absolute;top:802px;left:517px;white-space:nowrap" class="ft076">Jul</p> <p style="position:absolute;top:802px;left:558px;white-space:nowrap" class="ft076">Aug</p> <p style="position:absolute;top:802px;left:615px;white-space:nowrap" class="ft076">Sep</p> <p style="position:absolute;top:802px;left:670px;white-space:nowrap" class="ft076">Oct</p> <p style="position:absolute;top:802px;left:714px;white-space:nowrap" class="ft076">Nov</p> <p style="position:absolute;top:802px;left:771px;white-space:nowrap" class="ft076">Dec</p> <p style="position:absolute;top:571px;left:206px;white-space:nowrap" class="ft076">Issuance&#160;($B)</p> <p style="position:absolute;top:571px;left:783px;white-space:nowrap" class="ft076">Issuance&#160;($B)</p> <p style="position:absolute;top:573px;left:416px;white-space:nowrap" class="ft076">2018</p> <p style="position:absolute;top:573px;left:503px;white-space:nowrap" class="ft076">2019</p> <p style="position:absolute;top:573px;left:590px;white-space:nowrap" class="ft076">2020</p> <p style="position:absolute;top:573px;left:679px;white-space:nowrap" class="ft076">2021</p> <p style="position:absolute;top:819px;left:202px;white-space:nowrap" class="ft077"><i>Source:&#160;&#160;</i></p> <p style="position:absolute;top:820px;left:245px;white-space:nowrap" class="ft072"><i>Moody's&#160;/&#160;Dealogic</i></p> <p style="position:absolute;top:535px;left:209px;white-space:nowrap" class="ft078">Figure&#160;6.&#160;Market&#160;Cumulative Issuance&#160;-&#160;Corporate&#160;&amp;&#160;Financial&#160;Institutions:&#160;Euro&#160;&#160;Denominated</p> </div> <!-- Page 23 --> <a name="23"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft081{font-size:13px;font-family:Times;color:#333333;} .ft082{font-size:13px;font-family:Times;color:#4aacc5;} --> </style> <div id="page23-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022023.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">23&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:61px;left:60px;white-space:nowrap" class="ft031">Market Data&#160;</p> <p style="position:absolute;top:400px;left:864px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:403px;left:1080px;white-space:nowrap" class="ft075"><i>&#160;</i></p> <p style="position:absolute;top:144px;left:394px;white-space:nowrap" class="ft081">Investment-Grade</p> <p style="position:absolute;top:144px;left:588px;white-space:nowrap" class="ft081">High-Yield</p> <p style="position:absolute;top:144px;left:774px;white-space:nowrap" class="ft081">Total*</p> <p style="position:absolute;top:164px;left:423px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:164px;left:596px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:164px;left:768px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:182px;left:440px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:182px;left:613px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:182px;left:786px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:201px;left:265px;white-space:nowrap" class="ft081">Weekly</p> <p style="position:absolute;top:201px;left:427px;white-space:nowrap" class="ft081">57.572</p> <p style="position:absolute;top:201px;left:601px;white-space:nowrap" class="ft081">17.671</p> <p style="position:absolute;top:201px;left:772px;white-space:nowrap" class="ft081">75.243</p> <p style="position:absolute;top:221px;left:247px;white-space:nowrap" class="ft081">Year-to-Date</p> <p style="position:absolute;top:221px;left:427px;white-space:nowrap" class="ft081">57.572</p> <p style="position:absolute;top:221px;left:601px;white-space:nowrap" class="ft081">17.671</p> <p style="position:absolute;top:221px;left:772px;white-space:nowrap" class="ft081">77.943</p> <p style="position:absolute;top:276px;left:394px;white-space:nowrap" class="ft081">Investment-Grade</p> <p style="position:absolute;top:276px;left:588px;white-space:nowrap" class="ft081">High-Yield</p> <p style="position:absolute;top:276px;left:774px;white-space:nowrap" class="ft081">Total*</p> <p style="position:absolute;top:296px;left:423px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:296px;left:596px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:296px;left:768px;white-space:nowrap" class="ft081">Amount</p> <p style="position:absolute;top:313px;left:440px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:313px;left:613px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:313px;left:786px;white-space:nowrap" class="ft081">$B</p> <p style="position:absolute;top:333px;left:265px;white-space:nowrap" class="ft081">Weekly</p> <p style="position:absolute;top:333px;left:427px;white-space:nowrap" class="ft081">22.527</p> <p style="position:absolute;top:333px;left:602px;white-space:nowrap" class="ft081">2.460</p> <p style="position:absolute;top:333px;left:772px;white-space:nowrap" class="ft081">25.449</p> <p style="position:absolute;top:353px;left:247px;white-space:nowrap" class="ft081">Year-to-Date</p> <p style="position:absolute;top:353px;left:427px;white-space:nowrap" class="ft081">22.527</p> <p style="position:absolute;top:353px;left:602px;white-space:nowrap" class="ft081">2.460</p> <p style="position:absolute;top:353px;left:772px;white-space:nowrap" class="ft081">25.449</p> <p style="position:absolute;top:374px;left:199px;white-space:nowrap" class="ft076">*&#160;Difference&#160;represents issuance&#160;with&#160;pending&#160;ratings.</p> <p style="position:absolute;top:394px;left:199px;white-space:nowrap" class="ft077"><i>Source:&#160;Moody's/&#160;Dealogic</i></p> <p style="position:absolute;top:123px;left:560px;white-space:nowrap" class="ft082">USD&#160;Denominated</p> <p style="position:absolute;top:256px;left:560px;white-space:nowrap" class="ft082">Euro&#160;Denominated</p> <p style="position:absolute;top:100px;left:200px;white-space:nowrap" class="ft078">Figure 7.&#160;Issuance:&#160;Corporate &amp;&#160;Financial&#160;Institutions</p> </div> <!-- Page 24 --> <a name="24"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft083{font-size:12px;font-family:Times;color:#4471c4;} .ft084{font-size:12px;font-family:Times;color:#1256c5;} --> </style> <div id="page24-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022024.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">24&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:88px;left:196px;white-space:nowrap" class="ft016">Moody’s&#160;Capital&#160;Markets&#160;Research&#160;recent&#160;publications&#160;&#160;</p> <p style="position:absolute;top:112px;left:196px;white-space:nowrap" class="ft014">&#160;</p> <p style="position:absolute;top:141px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1260016">Stimulatory&#160;Monetary&#160;and&#160;Fiscal&#160;Policies&#160;Enhance&#160;Corporate&#160;Credit&#160;Outlook&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:168px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1257981">Financial&#160;Markets&#160;Have&#160;Largely&#160;Priced-In&#160;2021’s&#160;Positive&#160;Outlook&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:195px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1256084">Core&#160;Profits&#160;and&#160;U.S.&#160;Equities&#160;Set&#160;New&#160;Record&#160;Highs&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:222px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1254515">Operating&#160;Leverage&#160;May&#160;Help&#160;to&#160;Narrow&#160;Yield&#160;Spreads&#160;in&#160;2021&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:249px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1253621">Resurgent&#160;COVID-19&#160;Threatens&#160;Corporate&#160;Credit’s&#160;Improved&#160;Trend&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:276px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1252694">Split&#160;Congress&#160;Sparks&#160;Rallies&#160;by&#160;Equities,&#160;Corporates&#160;and Treasuries&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:303px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1252011">Credit&#160;Disputes&#160;Equities&#160;Gloom&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:330px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1251233">Corporate&#160;Cash Outruns&#160;Corporate&#160;Debt&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:357px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1250445">Profits&#160;Give&#160;Direction&#160;to Downgrades&#160;and&#160;Defaults&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:384px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1249454">Markets&#160;Sense&#160;an&#160;Upturn Despite&#160;Pockets&#160;of&#160;Profound Misery&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:411px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1248577">Record-High&#160;Bond&#160;Issuance&#160;Aids&#160;Nascent&#160;Upturn&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:437px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1247001">Corporate&#160;Bond&#160;Issuance&#160;Boom&#160;May&#160;Steady&#160;Credit&#160;Quality,&#160;On&#160;Balance&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:464px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1246017">Markets,&#160;Bankers&#160;and&#160;Analysts&#160;Differ&#160;on&#160;2021’s&#160;Default&#160;Rate&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:491px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1245136">Corporate&#160;Credit&#160;Mostly&#160;Unfazed&#160;by&#160;Equity&#160;Volatility&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:518px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1244311">Record&#160;August&#160;for&#160;Bond&#160;Issuance&#160;May&#160;Aid&#160;Credit&#160;Quality&#160;(Capital&#160;Market&#160;Research)&#160;</a></p> <p style="position:absolute;top:545px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243433">Fed&#160;Policy&#160;Shift&#160;Bodes&#160;Well&#160;for&#160;Corporate&#160;Credit&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:572px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1241727">Markets&#160;Avoid&#160;Great&#160;Recession’s&#160;Calamities&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:599px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1240950">Liquidity&#160;Surge&#160;Hints&#160;of&#160;More&#160;Upside&#160;Surprises&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:626px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1240102">Unprecedented&#160;Stimulus&#160;Lessens&#160;the&#160;Blow&#160;from&#160;Real&#160;GDP’s&#160;Record Dive&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:653px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1239249">Ultra-Low&#160;Bond&#160;Yields&#160;Buoy&#160;Corporate&#160;Borrowing&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:679px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1237222">Record-High&#160;Savings&#160;Rate&#160;and&#160;Ample&#160;Liquidity&#160;May&#160;Fund&#160;an&#160;Upside&#160;Surprise&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:706px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1235538">Unprecedented&#160;Demographic&#160;Change&#160;Will&#160;Shape&#160;Credit&#160;Markets&#160;Through&#160;2030&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:733px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1234558">Net&#160;High-Yield Downgrades&#160;Drop&#160;from&#160;Dreadful&#160;Readings&#160;of&#160;March&#160;and April&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:760px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1232454">Long&#160;Stay&#160;by&#160;Low&#160;Rates&#160;Fuels&#160;Corporate&#160;Debt&#160;and&#160;Equity&#160;Rallies&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:787px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1234794">Why&#160;Industrial&#160;(Warehouse)&#160;Will&#160;(Likely)&#160;Fare&#160;Better&#160;</a>(Capital&#160;Markers&#160;Research)&#160;</p> <p style="position:absolute;top:814px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1234559">CECL&#160;Adoption and Q1&#160;Results&#160;Amid&#160;COVID-19&#160;(</a>Capital&#160;Markets&#160;Research)&#160;</p> <p style="position:absolute;top:841px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1234175">Continued&#160;Signs&#160;of&#160;Weakness&#160;in US&#160;Non-Agency&#160;RMBS&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:868px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1233919">COVID-19&#160;and Distress&#160;in CMBS&#160;Markets&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:895px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1231194">Record-Fast&#160;Money&#160;Growth Eases&#160;Market&#160;Anxiety&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:921px;left:196px;white-space:nowrap" class="ft083"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1230295">Default&#160;Outlook:&#160;Markets&#160;Appear&#160;Less&#160;Worried than Credit&#160;Analysts&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:948px;left:196px;white-space:nowrap" class="ft084"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1229126">High&#160;Technology&#160;Is&#160;North&#160;America’s&#160;Biggest&#160;Corporate&#160;Borrower&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:975px;left:196px;white-space:nowrap" class="ft084"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1228055">Troubling&#160;Default&#160;Outlook&#160;Warns&#160;Against&#160;Complacency&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:1002px;left:196px;white-space:nowrap" class="ft084"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1226792">Fed&#160;Intervention&#160;Sparks&#160;Back-to-Back&#160;Record&#160;Highs&#160;for&#160;IG&#160;Issuance&#160;(Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:1029px;left:196px;white-space:nowrap" class="ft084"><a href="http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1225812">April’s&#160;Financial&#160;Markets&#160;Transcend&#160;Miserable&#160;Economic&#160;Data (Capital&#160;Markets&#160;Research)&#160;</a></p> <p style="position:absolute;top:1055px;left:196px;white-space:nowrap" class="ft07">&#160;</p> <p style="position:absolute;top:1056px;left:412px;white-space:nowrap" class="ft084">&#160;</p> </div> <!-- Page 25 --> <a name="25"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page25-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022025.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">25&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:99px;left:153px;white-space:nowrap" class="ft059">To order&#160;reprints&#160;of&#160;this&#160;report&#160;(100&#160;copies&#160;minimum), please&#160;call <PhoneNo>212.553.1658</PhoneNo>.&#160;</p> <p style="position:absolute;top:103px;left:153px;white-space:nowrap" class="ft059">&#160;</p> <p style="position:absolute;top:130px;left:183px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:158px;left:155px;white-space:nowrap" class="ft059">Report&#160;Number:&#160;&#160;1261022&#160;</p> <p style="position:absolute;top:158px;left:533px;white-space:nowrap" class="ft059">Contact Us&#160;</p> <p style="position:absolute;top:174px;left:155px;white-space:nowrap" class="ft059">&#160;</p> <p style="position:absolute;top:205px;left:155px;white-space:nowrap" class="ft059">Editor&#160;</p> <p style="position:absolute;top:221px;left:155px;white-space:nowrap" class="ft059">Reid&#160;Kanaley&#160;</p> <p style="position:absolute;top:237px;left:155px;white-space:nowrap" class="ft01"><a href="mailto:help@economy.com">help@economy.com</a></p> <p style="position:absolute;top:236px;left:253px;white-space:nowrap" class="ft059">&#160;</p> <p style="position:absolute;top:174px;left:533px;white-space:nowrap" class="ft059">Americas:&#160;</p> <p style="position:absolute;top:174px;left:734px;white-space:nowrap" class="ft059"><PhoneNo>1.212.553</PhoneNo>.4399&#160;</p> <p style="position:absolute;top:199px;left:533px;white-space:nowrap" class="ft059">Europe:&#160;</p> <p style="position:absolute;top:199px;left:699px;white-space:nowrap" class="ft059">+44&#160;(0)&#160;20.7772.5588&#160;</p> <p style="position:absolute;top:225px;left:533px;white-space:nowrap" class="ft059">Asia:&#160;</p> <p style="position:absolute;top:225px;left:736px;white-space:nowrap" class="ft059">813.5408.4131&#160;</p> </div> <!-- Page 26 --> <a name="26"></a> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft085{font-size:9px;font-family:Times;color:#000000;} .ft086{font-size:9px;font-family:Times;color:#0000ff;} .ft087{font-size:9px;line-height:17px;font-family:Times;color:#000000;} --> </style> <div id="page26-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1261022026.png" alt="background image"/> <p style="position:absolute;top:31px;left:223px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:31px;left:250px;white-space:nowrap" class="ft00">&#160;</p> <p style="position:absolute;top:1136px;left:196px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:1144px;left:55px;white-space:nowrap" class="ft030">26&#160;&#160;</p> <p style="position:absolute;top:1144px;left:109px;white-space:nowrap" class="ft030"><chron>JANUARY&#160;14,&#160;2021</chron>&#160;</p> <p style="position:absolute;top:1144px;left:568px;white-space:nowrap" class="ft030">CAPITAL&#160;MARKETS&#160;RESEARCH&#160;&#160;/&#160;&#160;MARKET&#160;OUTLOOK&#160;&#160;/ &#160;<a href="http://MOODYS.COM">MOODYS.COM</a>&#160;</p> <p style="position:absolute;top:26px;left:687px;white-space:nowrap" class="ft04"><b>CAPITAL MARKETS&#160;RESEARCH&#160;</b></p> <p style="position:absolute;top:40px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:55px;left:524px;white-space:nowrap" class="ft01">&#160;</p> <p style="position:absolute;top:87px;left:61px;white-space:nowrap" class="ft087">© 2021&#160;Moody’s Corporation,&#160;Moody’s <org>Investors Service,&#160;Inc</org>.,&#160;Moody’s Analytics,&#160;Inc.&#160;and/or&#160;their&#160;licensors and&#160;affiliates (collectively,&#160;“MOODY’S”).&#160;All rights&#160;reserved.&#160;<br/><b>CREDIT&#160;RATINGS&#160;ISSUED&#160;BY&#160;MOODY'S&#160;CREDIT&#160;RATINGS&#160;AFFILIATES&#160;ARE&#160;THEIR&#160;CURRENT&#160;OPINIONS&#160;OF&#160;THE RELATIVE FUTURE CREDIT&#160;RISK&#160;OF&#160;ENTITIES,&#160;CREDIT&#160;</b></p> <p style="position:absolute;top:117px;left:61px;white-space:nowrap" class="ft085"><b>COMMITMENTS,&#160;OR&#160;DEBT&#160;OR&#160;DEBT-LIKE&#160;SECURITIES,&#160;AND&#160;MATERIALS,&#160;PRODUCTS,&#160;SERVICES&#160;AND INFORMATION&#160;PUBLISHED BY&#160;MOODY’S&#160;(COLLECTIVELY,&#160;</b></p> <p style="position:absolute;top:130px;left:61px;white-space:nowrap" class="ft085"><b>“PUBLICATIONS”)&#160;MAY&#160;INCLUDE&#160;SUCH&#160;&#160;CURRENT&#160;OPINIONS.&#160;MOODY’S&#160;DEFINES&#160;CREDIT&#160;RISK&#160;AS&#160;THE&#160;RISK&#160;THAT&#160;AN&#160;ENTITY&#160;MAY&#160;NOT&#160;MEET&#160;ITS&#160;CONTRACTUAL&#160;</b></p> <p style="position:absolute;top:143px;left:61px;white-space:nowrap" class="ft085"><b>FINANCIAL&#160;OBLIGATIONS&#160;AS&#160;THEY&#160;COME&#160;DUE&#160;AND&#160;ANY&#160;ESTIMATED&#160;FINANCIAL&#160;LOSS&#160;IN&#160;THE&#160;EVENT&#160;OF&#160;DEFAULT&#160;OR&#160;IMPAIRMENT.&#160;SEE&#160;APPLICABLE&#160;MOODY’S&#160;</b></p> <p style="position:absolute;top:156px;left:61px;white-space:nowrap" class="ft085"><b>RATING SYMBOLS&#160;AND&#160;DEFINITIONS&#160;PUBLICATION&#160;FOR&#160;INFORMATION&#160;ON&#160;THE&#160;TYPES&#160;OF&#160;CONTRACTUAL&#160;FINANCIAL&#160;OBLIGATIONS&#160;ADDRESSED&#160;BY&#160;MOODY’S&#160;</b></p> <p style="position:absolute;top:169px;left:61px;white-space:nowrap" class="ft085"><b>CREDIT&#160;RATINGS.&#160;CREDIT&#160;RATINGS&#160;DO&#160;NOT&#160;ADDRESS&#160;ANY&#160;OTHER&#160;RISK,&#160;INCLUDING BUT&#160;NOT&#160;LIMITED&#160;TO:&#160;LIQUIDITY&#160;RISK,&#160;MARKET&#160;VALUE&#160;RISK,&#160;OR&#160;PRICE&#160;</b></p> <p style="position:absolute;top:181px;left:61px;white-space:nowrap" class="ft085"><b>VOLATILITY.&#160;CREDIT&#160;RATINGS,&#160;NON-CREDIT&#160;ASSESSMENTS&#160;(“ASSESSMENTS”),&#160;AND&#160; OTHER&#160;OPINIONS&#160;INCLUDED&#160;IN&#160;MOODY’S&#160;PUBLICATIONS&#160;ARE NOT&#160;</b></p> <p style="position:absolute;top:194px;left:61px;white-space:nowrap" class="ft085"><b>STATEMENTS&#160;OF&#160;CURRENT&#160;OR&#160;HISTORICAL&#160;FACT.&#160;MOODY’S&#160;PUBLICATIONS&#160;MAY&#160;ALSO&#160;INCLUDE&#160;QUANTITATIVE&#160;MODEL-BASED ESTIMATES&#160;OF&#160;CREDIT&#160;RISK&#160;AND&#160;</b></p> <p style="position:absolute;top:207px;left:61px;white-space:nowrap" class="ft085"><b>RELATED&#160;OPINIONS&#160;OR&#160;COMMENTARY&#160;PUBLISHED&#160;BY&#160;MOODY’S ANALYTICS,&#160;INC. AND/OR&#160;ITS AFFILIATES.&#160;MOODY’S CREDIT&#160;RATINGS, ASSESSMENTS,&#160;OTHER&#160;</b></p> <p style="position:absolute;top:220px;left:61px;white-space:nowrap" class="ft085"><b>OPINIONS&#160;AND&#160;PUBLICATIONS&#160;DO&#160;NOT&#160;CONSTITUTE&#160;OR&#160;PROVIDE&#160;INVESTMENT&#160;OR&#160;FINANCIAL&#160;ADVICE,&#160;AND&#160;MOODY’S&#160;CREDIT&#160;RATINGS,&#160;ASSESSMENTS,&#160;OTHER&#160;</b></p> <p style="position:absolute;top:233px;left:61px;white-space:nowrap" class="ft085"><b>OPINIONS&#160;AND&#160;&#160;PUBLICATIONS&#160;ARE&#160;NOT&#160;AND&#160;DO&#160;NOT&#160;PROVIDE&#160;RECOMMENDATIONS&#160;TO&#160;PURCHASE,&#160;SELL,&#160;OR&#160;HOLD&#160;PARTICULAR&#160;SECURITIES.&#160;MOODY’S&#160;</b></p> <p style="position:absolute;top:246px;left:61px;white-space:nowrap" class="ft085"><b>CREDIT&#160;RATINGS,&#160;ASSESSMENTS,&#160;OTHER&#160;OPINIONS&#160;AND&#160; PUBLICATIONS&#160;DO&#160;NOT&#160;COMMENT&#160;ON&#160;THE&#160;SUITABILITY&#160;OF&#160;AN&#160;INVESTMENT&#160;FOR&#160;ANY&#160;PARTICULAR&#160;</b></p> <p style="position:absolute;top:259px;left:61px;white-space:nowrap" class="ft085"><b>INVESTOR.&#160;MOODY’S ISSUES ITS&#160;CREDIT&#160;RATINGS,&#160;ASSESSMENTS&#160;AND&#160;OTHER&#160;OPINIONS&#160;AND&#160;PUBLISHES&#160;&#160;ITS&#160;PUBLICATIONS&#160;WITH&#160;THE&#160;EXPECTATION&#160;AND&#160;</b></p> <p style="position:absolute;top:271px;left:61px;white-space:nowrap" class="ft085"><b>UNDERSTANDING THAT&#160;EACH&#160;INVESTOR&#160;WILL,&#160;WITH&#160;DUE CARE,&#160;MAKE ITS&#160;OWN&#160;STUDY&#160;AND&#160;EVALUATION&#160;OF&#160;EACH&#160;SECURITY&#160;THAT&#160;IS&#160;UNDER&#160;CONSIDERATION&#160;</b></p> <p style="position:absolute;top:284px;left:61px;white-space:nowrap" class="ft085"><b>FOR&#160;PURCHASE,&#160;HOLDING,&#160;OR&#160;SALE.&#160;</b>MOODY’S&#160;CREDIT&#160;RATINGS,&#160;ASSESSMENTS,&#160;OTHER&#160;OPINIONS,&#160;AND&#160;PUBLICATIONS&#160;ARE NOT&#160;INTENDED&#160;FOR&#160;USE BY&#160;RETAIL&#160;</p> <p style="position:absolute;top:297px;left:61px;white-space:nowrap" class="ft05">INVESTORS&#160;AND&#160;IT WOULD&#160;BE&#160;RECKLESS&#160;AND&#160;INAPPROPRIATE&#160;FOR&#160;RETAIL&#160;INVESTORS&#160;TO USE&#160;MOODY’S&#160;CREDIT RATINGS&#160;OR&#160;MOODY’S&#160;PUBLICATIONS&#160;WHEN&#160;MAKING&#160;</p> <p style="position:absolute;top:310px;left:61px;white-space:nowrap" class="ft087">AN&#160;INVESTMENT&#160;DECISION.&#160;IF&#160;IN&#160;DOUBT&#160;YOU&#160;SHOULD&#160;CONTACT&#160;YOUR&#160;FINANCIAL&#160;OR&#160;OTHER&#160;PROFESSIONAL&#160;ADVISER.&#160;<br/>ALL&#160;INFORMATION&#160;CONTAINED&#160;HEREIN&#160;IS&#160;PROTECTED&#160;BY&#160;LAW,&#160;INCLUDING&#160;BUT NOT LIMITED&#160;TO,&#160;COPYRIGHT LAW,&#160;AND&#160;NONE&#160;OF&#160;SUCH&#160;INFORMATION&#160;MAY&#160;BE COPIED&#160;</p> <p style="position:absolute;top:340px;left:61px;white-space:nowrap" class="ft05">OR&#160;OTHERWISE&#160;REPRODUCED,&#160;REPACKAGED,&#160;FURTHER TRANSMITTED,&#160;TRANSFERRED,&#160;DISSEMINATED,&#160;REDISTRIBUTED&#160;OR RESOLD,&#160;OR STORED&#160;FOR&#160;SUBSEQUENT&#160;USE FOR&#160;</p> <p style="position:absolute;top:353px;left:61px;white-space:nowrap" class="ft05">ANY&#160;SUCH&#160;PURPOSE,&#160;IN&#160;WHOLE&#160;OR&#160;IN&#160;PART,&#160;IN&#160;ANY&#160;FORM&#160;OR&#160;MANNER&#160;OR&#160;BY&#160;ANY&#160;MEANS&#160;WHATSOEVER,&#160;BY&#160;ANY&#160;PERSON&#160;WITHOUT&#160;MOODY’S&#160;PRIOR&#160;WRITTEN&#160;</p> <p style="position:absolute;top:366px;left:61px;white-space:nowrap" class="ft087">CONSENT.&#160;<br/>MOOD’S&#160;CREDIT&#160;RATINGS,&#160;ASSESSMENTS,&#160;OR&#160;OTHER&#160;OPINIONS&#160;AND&#160;PUBLICATIONS&#160;ARE NOT&#160;INTENDED&#160;FOR&#160;USE&#160;BY&#160;ANY&#160;PERSON&#160;AS&#160;A&#160;BENCHMARK&#160;AS&#160;THAT&#160;TERM&#160;IS&#160;</p> <p style="position:absolute;top:396px;left:61px;white-space:nowrap" class="ft087">DEFINED&#160;FOR&#160;REGULATORY&#160;PURPOSES&#160;AND&#160;MUST&#160;NOT&#160;BE USED&#160;IN&#160;ANY&#160;WAY&#160;THAT&#160;COULD&#160;RESULT&#160;IN&#160;THEM&#160;BEING&#160;CONSIDERED&#160;A&#160;BENCHMARK.&#160;<br/>All&#160;information&#160;contained&#160;herein&#160;is&#160;obtained&#160;by&#160;MOODY’S&#160;from&#160;sources&#160;believed&#160;by&#160;it&#160;to&#160;be accurate and&#160;reliable.&#160;Because&#160;of&#160;the&#160;possibility&#160;of&#160;human&#160;or&#160;mechanical&#160;error as&#160;well&#160;as&#160;</p> <p style="position:absolute;top:426px;left:61px;white-space:nowrap" class="ft05">other&#160;factors,&#160;however,&#160;all&#160;information&#160;contained&#160;herein is provided&#160;“AS&#160;IS”&#160;without warranty&#160;of&#160;any&#160;kind.&#160;MOODY'S&#160;adopts all&#160;necessary&#160;measures so&#160;that the&#160;information it&#160;uses&#160;</p> <p style="position:absolute;top:439px;left:61px;white-space:nowrap" class="ft05">in assigning a&#160;credit rating is of&#160;sufficient&#160;quality&#160;and&#160;from&#160;sources MOODY'S&#160;considers to&#160;be&#160;reliable&#160;including,&#160;when appropriate,&#160;independent&#160;third-party&#160;sources.&#160;However,&#160;</p> <p style="position:absolute;top:452px;left:61px;white-space:nowrap" class="ft087">MOODY’S&#160;is&#160;not&#160;an&#160;auditor and&#160;cannot&#160;in&#160;every&#160;instance independently&#160;verify&#160;or&#160;validate information&#160;received&#160;in&#160;the rating&#160;process or&#160;in preparing the&#160;Moody’s&#160;publications.&#160;&#160;<br/>To&#160;the&#160;extent&#160;permitted&#160;by&#160;law,&#160;MOODY’S&#160;and&#160;its directors,&#160;officers,&#160;employees,&#160;agents,&#160;representatives,&#160;licensors and&#160;suppliers disclaim&#160;liability&#160;to&#160;any&#160;person&#160;or&#160;entity&#160;for&#160;any&#160;</p> <p style="position:absolute;top:482px;left:61px;white-space:nowrap" class="ft05">indirect,&#160;special,&#160;consequential,&#160;or&#160;incidental&#160;losses&#160;or&#160;damages whatsoever&#160;arising from&#160;or&#160;in connection with&#160;the&#160;information&#160;contained&#160;herein&#160;or&#160;the&#160;use&#160;of&#160;or&#160;inability&#160;to&#160;use&#160;any&#160;</p> <p style="position:absolute;top:495px;left:61px;white-space:nowrap" class="ft05">such&#160;information,&#160;even if&#160;MOODY’S&#160;or&#160;any&#160;of&#160;its&#160;directors,&#160;officers,&#160;employees,&#160;agents,&#160;representatives,&#160;licensors&#160;or&#160;suppliers is advised&#160;in advance&#160;of&#160;the&#160;possibility&#160;of&#160;such&#160;losses&#160;</p> <p style="position:absolute;top:508px;left:61px;white-space:nowrap" class="ft05">or&#160;damages,&#160;including&#160;but&#160;not limited&#160;to:&#160;(a)&#160;any&#160;loss&#160;of&#160;present or&#160;prospective&#160;profits&#160;or&#160;(b)&#160;any&#160;loss&#160;or&#160;damage&#160;arising where&#160;the&#160;relevant financial&#160;instrument is not the&#160;subject of&#160;</p> <p style="position:absolute;top:521px;left:61px;white-space:nowrap" class="ft087">a&#160;particular&#160;credit rating assigned&#160;by&#160;MOODY’S.&#160;<br/>To&#160;the extent&#160;permitted&#160;by&#160;law,&#160;MOODY’S&#160;and&#160;its directors,&#160;officers,&#160;employees,&#160;agents,&#160;representatives,&#160;licensors and&#160;suppliers disclaim&#160;liability&#160;for&#160;any&#160;direct&#160;or&#160;compensatory&#160;</p> <p style="position:absolute;top:551px;left:61px;white-space:nowrap" class="ft05">losses or&#160;damages&#160;caused&#160;to&#160;any&#160;person&#160;or&#160;entity,&#160;including&#160;but not limited&#160;to&#160;by&#160;any&#160;negligence&#160;(but excluding fraud,&#160;willful&#160;misconduct&#160;or&#160;any&#160;other&#160;type&#160;of&#160;liability&#160;that,&#160;for&#160;the&#160;</p> <p style="position:absolute;top:564px;left:61px;white-space:nowrap" class="ft05">avoidance&#160;of&#160;doubt,&#160;by&#160;law&#160;cannot&#160;be&#160;excluded)&#160;on the&#160;part&#160;of,&#160;or&#160;any&#160;contingency&#160;within or&#160;beyond&#160;the&#160;control&#160;of,&#160;MOODY’S&#160;or&#160;any&#160;of&#160;its directors,&#160;officers,&#160;employees,&#160;agents,&#160;</p> <p style="position:absolute;top:577px;left:61px;white-space:nowrap" class="ft087">representatives,&#160;licensors or&#160;suppliers,&#160;arising from&#160;or&#160;in&#160;connection with&#160;the&#160;information&#160;contained&#160;herein&#160;or&#160;the&#160;use&#160;of&#160;or&#160;inability&#160;to&#160;use any&#160;such&#160;information.&#160;<br/>NO&#160;WARRANTY,&#160;EXPRESS&#160;OR&#160;IMPLIED,&#160;AS&#160;TO&#160;THE ACCURACY,&#160;TIMELINESS,&#160;COMPLETENESS,&#160;MERCHANTABILITY&#160;OR FITNESS&#160;FOR ANY&#160;PARTICULAR&#160;PURPOSE&#160;OF&#160;ANY&#160;</p> <p style="position:absolute;top:607px;left:61px;white-space:nowrap" class="ft087">CREDIT RATING&#160;OR&#160;OTHER&#160;OPINION&#160;OR&#160;INFORMATION&#160;IS&#160;GIVEN&#160;OR&#160;MADE&#160;BY&#160;MOODY’S&#160;IN&#160;ANY&#160;FORM&#160;OR&#160;MANNER&#160;WHATSOEVER.&#160;<br/>Moody’s <org>Investors Service,&#160;Inc</org>.,&#160;a&#160;wholly-owned&#160;credit rating agency&#160;subsidiary&#160;of&#160;Moody’s Corporation (“MCO”),&#160;hereby&#160;discloses that&#160;most issuers&#160;of&#160;debt securities (including&#160;</p> <p style="position:absolute;top:637px;left:61px;white-space:nowrap" class="ft05">corporate&#160;and&#160;municipal&#160;bonds,&#160;debentures,&#160;notes and&#160;commercial&#160;paper)&#160;and&#160;preferred&#160;stock&#160;rated&#160;by&#160;Moody’s Investors&#160;Service,&#160;Inc.&#160;have,&#160;prior&#160;to&#160;assignment of&#160;any&#160;rating,&#160;</p> <p style="position:absolute;top:650px;left:61px;white-space:nowrap" class="ft05">agreed&#160;to&#160;pay&#160;to&#160;Moody’s Investors&#160;Service,&#160;Inc.&#160;for&#160;ratings&#160;opinions and&#160;services rendered&#160;by&#160;it fees ranging from&#160;<money>$1,000</money>&#160;to&#160;approximately&#160;<money>$5,000,000</money>.&#160;MCO&#160;and&#160;MIS&#160;also&#160;</p> <p style="position:absolute;top:663px;left:61px;white-space:nowrap" class="ft05">maintain&#160;policies&#160;and&#160;procedures&#160;to&#160;address&#160;the independence&#160;of&#160;MIS’s&#160;ratings&#160;and&#160;rating&#160;processes.&#160;Information regarding&#160;certain affiliations that&#160;may&#160;exist&#160;between directors&#160;of&#160;</p> <p style="position:absolute;top:676px;left:61px;white-space:nowrap" class="ft05">MCO&#160;and&#160;rated&#160;entities,&#160;and&#160;between&#160;entities&#160;who&#160;hold&#160;ratings&#160;from&#160;MIS&#160;and&#160;have also&#160;publicly&#160;reported&#160;to&#160;the SEC an&#160;ownership&#160;interest in MCO&#160;of&#160;more&#160;than 5%,&#160;is&#160;posted&#160;</p> <p style="position:absolute;top:689px;left:61px;white-space:nowrap" class="ft05">annually<a href="http://www.moodys.com/">&#160;at&#160;</a></p> <p style="position:absolute;top:689px;left:113px;white-space:nowrap" class="ft086"><a href="http://www.moodys.com/"><a href="http://www.moodys.com">www.moodys.com</a></a></p> <p style="position:absolute;top:689px;left:197px;white-space:nowrap" class="ft05"><a href="http://www.moodys.com/">&#160;u</a>nder&#160;the&#160;heading “Investor&#160;Relations&#160;—&#160;Corporate Governance&#160;—&#160;Director and&#160;Shareholder Affiliation&#160;Policy.”&#160;</p> <p style="position:absolute;top:706px;left:61px;white-space:nowrap" class="ft05">Additional&#160;terms for&#160;Australia&#160;only:&#160;Any&#160;publication into&#160;Australia&#160;of&#160;this document is pursuant&#160;to&#160;the&#160;Australian Financial&#160;Services License&#160;of&#160;MOODY’S&#160;affiliate,&#160;Moody’s Investors&#160;</p> <p style="position:absolute;top:719px;left:61px;white-space:nowrap" class="ft05">Service&#160;Pty&#160;Limited&#160;ABN&#160;61&#160;003&#160;399&#160;657AFSL&#160;336969&#160;and/or&#160;Moody’s Analytics Australia&#160;Pty&#160;Ltd&#160;ABN&#160;94&#160;105 136&#160;972&#160;AFSL&#160;383569&#160;(as&#160;applicable).&#160;This&#160;document&#160;is&#160;intended&#160;to&#160;</p> <p style="position:absolute;top:732px;left:61px;white-space:nowrap" class="ft05">be&#160;provided&#160;only&#160;to&#160;“wholesale&#160;clients”&#160;within the&#160;meaning&#160;of&#160;section 761G&#160;of&#160;the&#160;Corporations Act 2001.&#160;By&#160;continuing&#160;to&#160;access&#160;this document from&#160;within&#160;Australia,&#160;you&#160;</p> <p style="position:absolute;top:745px;left:61px;white-space:nowrap" class="ft05">represent to&#160;MOODY’S&#160;that you&#160;are,&#160;or&#160;are&#160;accessing&#160;the&#160;document&#160;as a&#160;representative&#160;of,&#160;a&#160;“wholesale&#160;client”&#160;and&#160;that neither&#160;you&#160;nor&#160;the&#160;entity&#160;you&#160;represent will&#160;directly&#160;or&#160;</p> <p style="position:absolute;top:758px;left:61px;white-space:nowrap" class="ft05">indirectly&#160;disseminate&#160;this document or&#160;its contents&#160;to&#160;“retail&#160;clients”&#160;within the&#160;meaning&#160;of&#160;section 761G&#160;of&#160;the&#160;Corporations Act 2001.&#160;MOODY’S&#160;credit rating is&#160;an opinion as to&#160;</p> <p style="position:absolute;top:771px;left:61px;white-space:nowrap" class="ft087">the&#160;creditworthiness&#160;of&#160;a&#160;debt obligation&#160;of&#160;the&#160;issuer,&#160;not&#160;on&#160;the&#160;equity&#160;securities of&#160;the&#160;issuer&#160;or&#160;any&#160;form&#160;of&#160;security&#160;that is available&#160;to&#160;retail&#160;investors.&#160;<br/>Additional&#160;terms&#160;for&#160;Japan&#160;only: Moody's&#160;Japan&#160;K.K. (“MJKK”)&#160;is&#160;a&#160;wholly&#160;owned&#160;credit rating agency&#160;subsidiary&#160;of&#160;Moody's&#160;Group&#160;Japan G.K.,&#160;which&#160;is&#160;wholly&#160;owned&#160;by Moody’s&#160;</p> <p style="position:absolute;top:801px;left:61px;white-space:nowrap" class="ft05"><org>Overseas Holdings Inc.</org>,&#160;a&#160;wholly&#160;owned&#160;subsidiary&#160;of&#160;MCO.&#160;Moody’s&#160;SF&#160;Japan&#160;K.K.&#160;(“MSFJ”)&#160;is&#160;a&#160;wholly&#160;owned&#160;credit rating&#160;agency&#160;subsidiary&#160;of&#160;MJKK.&#160;MSFJ&#160;is not&#160;a&#160;Nationally&#160;</p> <p style="position:absolute;top:814px;left:61px;white-space:nowrap" class="ft05"><org>Recognized&#160;Statistical&#160;Rating Organization</org> (“NRSRO”).&#160;Therefore,&#160;credit ratings assigned&#160;by&#160;MSFJ&#160;are&#160;Non-NRSRO&#160;Credit Ratings.&#160;Non-NRSRO&#160;Credit Ratings are&#160;assigned&#160;by&#160;an&#160;</p> <p style="position:absolute;top:826px;left:61px;white-space:nowrap" class="ft05">entity&#160;that is not a&#160;NRSRO&#160;and,&#160;consequently,&#160;the&#160;rated&#160;obligation will&#160;not qualify&#160;for&#160;certain types&#160;of&#160;treatment under&#160;U.S.&#160;laws.&#160;MJKK&#160;and&#160;MSFJ&#160;are&#160;credit rating agencies&#160;</p> <p style="position:absolute;top:839px;left:61px;white-space:nowrap" class="ft087">registered&#160;with&#160;the Japan&#160;Financial&#160;Services&#160;Agency&#160;and&#160;their registration&#160;numbers&#160;are FSA&#160;Commissioner (Ratings)&#160;No.&#160;2&#160;and&#160;3&#160;respectively.&#160;<br/>MJKK&#160;or&#160;MSFJ&#160;(as applicable)&#160;hereby&#160;disclose&#160;that&#160;most issuers&#160;of&#160;debt&#160;securities (including corporate&#160;and&#160;municipal&#160;bonds,&#160;debentures,&#160;notes&#160;and&#160;commercial&#160;paper)&#160;and&#160;preferred&#160;</p> <p style="position:absolute;top:870px;left:61px;white-space:nowrap" class="ft05">stock&#160;rated&#160;by&#160;MJKK&#160;or&#160;MSFJ&#160;(as applicable)&#160;have,&#160;prior&#160;to&#160;assignment&#160;of&#160;any&#160;rating,&#160;agreed&#160;to&#160;pay&#160;to&#160;MJKK&#160;or&#160;MSFJ&#160;(as applicable)&#160;for&#160;ratings opinions and&#160;services rendered&#160;by&#160;its&#160;</p> <p style="position:absolute;top:882px;left:61px;white-space:nowrap" class="ft087">fees ranging from&#160;<money>JPY125,000</money>&#160;to&#160;approximately&#160;<money>JPY550,000,000</money>.&#160;<br/>MJKK&#160;and&#160;MSFJ&#160;also&#160;maintain&#160;policies&#160;and&#160;procedures&#160;to&#160;address&#160;Japanese regulatory&#160;requirements.&#160;<br/>For&#160;Publications Issued&#160;by&#160;Moody’s <org>Capital&#160;Markets Research,&#160;Inc</org>.&#160;only:&#160;<br/>The&#160;statements contained&#160;in this research&#160;report are&#160;based&#160;solely&#160;upon the&#160;opinions of&#160;Moody’s <org>Capital&#160;Markets Research,&#160;Inc</org>.&#160;and&#160;the&#160;data&#160;and&#160;information&#160;available to&#160;the&#160;</p> <p style="position:absolute;top:947px;left:61px;white-space:nowrap" class="ft087">authors at&#160;the&#160;time&#160;of&#160;publication&#160;of&#160;this report.&#160;There&#160;is no&#160;assurance&#160;that any&#160;predicted&#160;results will&#160;actually&#160;occur.&#160;Past&#160;performance is&#160;no&#160;guarantee of&#160;future results.&#160;<br/>The analysis&#160;in&#160;this&#160;report&#160;has&#160;not&#160;been&#160;made available&#160;to&#160;any&#160;issuer prior to&#160;publication.&#160;<br/>When&#160;making&#160;an investment&#160;decision,&#160;investors should&#160;use&#160;additional&#160;sources&#160;of&#160;information and&#160;consult with&#160;their&#160;investment&#160;advisor.&#160;Investing&#160;in&#160;securities&#160;involves&#160;certain&#160;risks&#160;</p> <p style="position:absolute;top:995px;left:61px;white-space:nowrap" class="ft087">including&#160;possible&#160;fluctuations in investment return and&#160;loss of&#160;principal.&#160;Investing in&#160;bonds&#160;presents additional&#160;risks,&#160;including&#160;changes in interest rates and&#160;credit&#160;risk.&#160;<br/><org>Moody's Capital&#160;Markets&#160;Research,&#160;Inc</org>.,&#160;is a&#160;subsidiary&#160;of&#160;MCO.&#160;Please&#160;note&#160;that&#160;Moody’s&#160;Analytics,&#160;Inc.,&#160;an affiliate&#160;of&#160;Moody’s&#160;<org>Capital&#160;Markets&#160;Research, Inc.</org> and&#160;a subsidiary&#160;of&#160;</p> <p style="position:absolute;top:1025px;left:61px;white-space:nowrap" class="ft05">MCO,&#160;provides a&#160;wide&#160;range&#160;of&#160;research&#160;and&#160;analytical&#160;products and&#160;services to&#160;corporations and&#160;participants in the&#160;financial&#160;markets.&#160;Customers of&#160;Moody’s Analytics,&#160;Inc.&#160;may&#160;</p> <p style="position:absolute;top:1038px;left:61px;white-space:nowrap" class="ft05">include companies&#160;mentioned&#160;in this report.&#160;Please&#160;be&#160;advised&#160;that a&#160;conflict&#160;may&#160;exist and&#160;that any&#160;investment decisions&#160;you&#160;make&#160;are&#160;your&#160;own responsibility.&#160;The&#160;Moody’s&#160;</p> <p style="position:absolute;top:1051px;left:61px;white-space:nowrap" class="ft05">Analytics logo&#160;is&#160;used&#160;on&#160;certain Moody’s&#160;<org>Capital&#160;Markets Research,&#160;Inc</org>.&#160;products for&#160;marketing&#160;purposes&#160;only.&#160;Moody’s&#160;<org>Analytics, Inc.</org> is&#160;a separate&#160;company&#160;from&#160;Moody’s&#160;Capital&#160;</p> <p style="position:absolute;top:1064px;left:61px;white-space:nowrap" class="ft05">Markets&#160;Research,&#160;Inc.&#160;</p> </div> </body> </html>