North American Bond Research – March 16, 2020

MARKETS GET CRUSHED  AS GOVERNMENTS RACE TO FIGHT THE CORONAVIRUS AND SHORE UP FINANCIAL MARKETS AND ECONOMIES. 10 Year Treasury notes were down 22.3 basis points.  S&P –11.98%, Dow -12.93%, NASDAQ  -12.32%.

Key Gainers and Losers	Volume Leaders
+   SpringLeaf Finance Corp. 8.25% 12/15/2020 +1.0%   Radiate Holdco LLC 6.625% 2/15/2025 144A +2.6%   Barclays PLC 4.836% 5/9/2028 +0.1%   Frontier Communications Corp. 8% 4/1/2027 144A +0.4% –   TransDigm Inc. 6.25% 3/15/2026 144A -4.4%   Kosmos Energy 7.125% 4/4/2026 RegS -35.5%   HCA Inc. 5% 3/15/2024 -0.7%   Washington Prime Group LP 5.95% 8/15/2024 -9.5%	TransDigm Inc.   6.25% 3/15/2026 144A Kosmos Energy   7.125% 4/4/2026 RegS HCA Inc.   5% 3/15/2024 Washington Prime Group LP   5.95% 8/15/2024

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -1.74% -8.85% -10.24% -8.10% -8.68% 3.86% Mining -0.28% -22.62% -27.51% -27.36% -28.41% -21.22% Construction -0.59% -4.12% -4.45% -2.08% -2.34% 8.92% Manufacturing -0.30% -5.81% -6.85% -4.13% -5.05% 4.27% Transportion, Communication, Electric/Gas -0.11% -6.88% -7.88% -4.92% -5.80% 4.91% Wholesale -0.02% -5.45% -6.94% -4.77% -5.57% 2.61% Retail -0.05% -6.26% -7.70% -5.08% -6.22% 6.17% Finance, Insurance, Real-Estate -0.50% -5.76% -6.64% -4.61% -5.21% 4.36% Services -0.22% -6.00% -7.29% -5.41% -6.06% 3.58% Public Administration -1.99% -10.41% -9.84% -6.89% -7.83% 1.39% Energy -0.03% -23.00% -27.16% -26.13% -27.75% -20.68%   Total returns (non-annualized) by rating, market weighted.

New Issues

Forward Calendar

(None Current 03/16/2020)

1. AVI-SPL: $370MM covenant lite TLB (B2/B) 2. Service Logic: $140MM bank debt: $40MM TL; $100MM DD TL 3. CJ Foods Inc.: $285MM TLB 4. Cornerstone Ondemand Inc.: $1.135MM senior secured credit facilities: $150MM revolver; $985MM TLB 5. Eldorado Resorts Inc./Caesars Entertainment Corp.: $6.4B credit facilities:$1B revolver at Eldorados; $3B seven-year cove-lite TLB due 2027 at Eldorado; $2.4B seven-year cove-lite TLB due 2027 at Caesars Resorts Collection 6. Innovate Xcessories & Services LLC: $695MM credit facilities: $75MM revolver; $620MM TL(B2/B) 7. Instructure: $825MM senior secured credit facilities: $50MM revolver; $775MM TL 8. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 9. Snapav: $390MM term loans: $290MM TL (B2); $100MM TL 10. Tata Chemicals North America Inc. : $380MM TL (Ba3)

NEW ISSUANCE WATCH: on 02/21/2020 participants welcome a $600MM new corporate-bond offering by
Mattamy Group.  The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.

Top Widening Loans	Top Narrowing Loans
AVSC Holding Corp. (USD) TLB L+450 09/19/2026 Mcjunkin Red Man Corp. (USD) TLB L+275 09/20/2024 Audio Visual Services Corp. (USD) TLB L+325 03/01/2025 CEVA Logistics Holdings BV (USD) TLB L+500 08/03/2025 Kingpin Intermediate Holdings LLC (USD) TLB L+350 07/03/2024	SS&C Technologies Inc. (USD) TLB4 L+175 04/18/2025 Paysafe Group PLC (USD) TL L+350 01/02/2025 Cvent Inc. (USD) TL L+375 11/02/2024 DTZ US Borrower LLC (USD) TLB L+275 08/21/2025 Ancestry.com Operations Inc. (USD) TLB L+325 10/19/2023

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.

OVERALL CREDIT MARKET:

Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces.  Positive effects remained in force:

• TED spread held below  58 bp (basis points), as of 03/16/2020
• Net negative capital flows into high-yield ETFs & mutual funds

MARKETS GET CRUSHED  AS GOVERNMENTS RACE TO FIGHT THE CORONAVIRUS AND SHORE UP FINANCIAL MARKETS AND ECONOMIES.  10 Year Treasury notes were down 22.3 basis points.  S&P –11.98%, Dow -12.93%, NASDAQ  -12.32%.

CORONA VIRUS UPDATE: CHINA TO DATE HAS HAD 180000+ CASES AND 8000+ DEATHS. THE VIRUS SEEMS TO BE SLOWING DOWN IN CHINA AS NEW CASES AND DEATHS SEEM TO BE ACCELERATING INTERNATIONALLY.  (Advantage Data Inc.). Extensive corporate-bond index data showed a net daily grade increment for high-grade versus high-yield constituents. High-yield bonds edged out high-grade debt as of 3 PM, London time.  Among European high-yield bonds showing a concurrence of top price gains at appreciable volumes traded,  Bombardier Inc. (USD) 7.5% 12/1/2024 Reg S made some analysts ‘Conviction buy’ lists. (See the chart for Bombardier Inc. bonds below). Pierre Robert

Key Gainers and Losers	Volume Leaders
+   Amazon.com Inc. 2.8% 8/22/2024 +0.0%   CVS Health Corp. 4.1% 3/25/2025 +0.1%   Bank of America Corp. 4.33% 3/15/2050 +2.7%   Verizon Communications Inc. 4.862% 8/21/2046 +1.6% –   Anheuser-Busch Inbev Worldwide Inc. 5.55% 1/23/2049 -4.8%   Bank of America Corp. 2.496% 2/13/2031 -2.8%   JP Morgan Chase & Co. 4.6% PERP -5.9%   GE Capital Intl. Funding Co. 4.418% 11/15/2035 -1.8%	Anheuser-Busch Inbev Worldwide Inc.   5.55% 1/23/2049 Bank of America Corp.   2.496% 2/13/2031 JP Morgan Chase & Co.   4.6% PERP GE Capital Intl. Funding Co.   4.418% 11/15/2035

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.65% -2.08% -1.05% 1.86% 1.39% 5.87% Mining -0.51% -11.21% -9.98% -8.00% -8.34% 2.99% Construction -0.68% -6.74% -4.84% -2.44% -2.60% 5.19% Manufacturing -0.58% -4.43% -1.88% 0.20% 0.14% 9.96% Transportion, Communication, Electric/Gas -0.63% -6.80% -3.69% -1.16% -1.14% 10.77% Wholesale -0.72% -4.05% -2.15% -0.21% -0.43% 9.90% Retail -0.54% -4.84% -1.98% 0.06% 0.05% 10.48% Finance, Insurance, Real-Estate -0.46% -3.37% -1.41% 0.31% 0.20% 7.90% Services -0.61% -4.41% -1.71% 0.34% 0.26% 9.90% Public Administration -0.14% -0.19% 2.01% 2.94% 2.90% 6.30% Energy -0.64% -11.69% -10.50% -8.50% -8.87% 1.75%   Total returns (non-annualized) by rating, market weighted.

New Issues	New Issues [Continued]
(None Current 03/16/2020)

NEW ISSUANCE WATCH: on 03/06/2020 participants welcome a $700MM new corporate-bond offering by Key Bank. The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.

Top Widening Loans	Top Narrowing Loans
AVSC Holding Corp. (USD) TLB L+450 09/19/2026 Mcjunkin Red Man Corp. (USD) TLB L+275 09/20/2024 Audio Visual Services Corp. (USD) TLB L+325 03/01/2025 CEVA Logistics Holdings BV (USD) TLB L+500 08/03/2025 Kingpin Intermediate Holdings LLC (USD) TLB L+350 07/03/2024	SS&C Technologies Inc. (USD) TLB4 L+175 04/18/2025 Paysafe Group PLC (USD) TL L+350 01/02/2025 Cvent Inc. (USD) TL L+375 11/02/2024 DTZ US Borrower LLC (USD) TLB L+275 08/21/2025 Ancestry.com Operations Inc. (USD) TLB L+325 10/19/2023

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.

OVERALL CREDIT MARKET:

Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces.  Positive effects remained in force:

• TED spread held below 58 bp (basis points), as of 03/16/2020
• Net positive capital flows into high-yield ETFs & mutual funds

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