Moody’s Asset Management Conference Will There Be a Great Rotation

7/23/2019 Moodys Asset Management Conference Will There Be a Great Rotation

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Moodys Asset ManagementConference: Will There Be AGreat Rotation?

April 26 2!"#


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Moodys Asset Management Conference: Will There Be AGreat Rotation?

2

Welcome


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3

9:00 AM - 9:45 PM Economic Outlook and Prospects for Capital Formation

Jon !onski" Chief Capital Markets Economist, Moody's Analytics

9:45 AM - #0:$0 AM Panel %iscussion: %e&t 'ssuers Perspecti(e

Sector Views: Specter of rising rates, curse or a lessing!"

%aniel )errao, Associate Managing #irector, Managed $n%estments &roup Moderator(

)ulic *inance and )ensions + *imot+ ,lake, Managing #irector

e%eraged *inance + Cris Padett, Senior Vice )resident

-E$.s + Pilip .i&el, Senior Vice )resident

#0:$0 AM - #0:45 AM ,reak

#0:45 AM - ##:#5 PM !i/uidit+ 'mpact: Mone+ Markets/ew #irections for Cash $n%estors in a Changing En%ironment, -ates, Supply and $n%estor 0eha%ior

o&ert Calla+, Vice )resident and Senior Analyst, Managed $n%estments &roup

##:#5 AM - ##:45 AM Asset Class Perspecti(es: Closed-End Funds

Can the Carry .rade Carry+1n!"

$ncome to growth and product inno%ation case studies2 )erspecti%es on le%erage

1eal Epstein, Vice )resident and Senior Credit 1fficer, Managed $n%estments &roup

##:45 AM - #2:$0 PM Panel %iscussion: )potlit on otation )cenarios and 'mplications for Manaer CreditProfiles

-isks and -ewards Considered in making the call", Asset realancing in a time of transition, Achie%ing $n%estment

13ecti%es in )eriods of Asset Migration, *i4ed $ncome to E5uities"

%aniel )errao, Associate Managing #irector, Managed $n%estments &roup Moderator(

Micael F3 Maier, Senior *i4ed $ncome Strategist, Van Eck Associates Corporation

illiam *3 Me+ers" Managing #irector, /u%een $n%estments, C

!ea Modiliani, Senior Vice )resident, /euerger 0erman &roup, C

*O%A67) A8E1%A


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isin ates of esource tiliation to!ift Profits and 6ieldsJon !onski" Manain %irector and Cief Capital Markets Economist" CapitalMarkets ResearchGroup


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Mood+7s Capital Markets esearc 8roup" April 6789

*iscal Austerity8


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Mood+7s Capital Markets esearc 8roup" April 6789 6

) Enters 'nto ncarted %emorapic *erritor+333A(erae Annual8rot ates %urin 1e;t #0 6ears ill )lo to 035< for orkin AePopulation and $32< for *ose =5 6ears and Older

A(erae annualied rot rates of #0-+ear spans" actual > predicted


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eal Federal 8o(ernment )pendin )ould %rop


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eal )tate > !ocal 8o(ernment )pendin )ould %ecline


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Cost of 'nsurin )tate > !ocal 8o(ernment %e&t )inks:Cost of Insuring $10,000 of Debt


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&loal )rospects6


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Euroone 's a Ma?or" %isinflationar+ %ra on orld Economic Acti(it+:Contraction < 50, Epansion ! 50" source# Markit, %Morgan, MCMRG


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20#$ ill ,e #4t )trait 6ear 'n ic Emerin Markets OutrunAd(anced Economies 333 A@A@8@s of #0-+ears-ended 20#2 #3=< for%e(eloped Countries and =3=< for Emerin Markets : && ' changes


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Plune &+ 1et E;ports as Percent of ) 8%P to 2005-200=Bs ecord!o ints of !oss of 8lo&al Competiti(eness


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) Mercandise E;ports 8re &+ 235< +ear-o(er-+ear %urin $-monts-ended Fe&ruar+

20#$ as D

#3E;ports to !atin America re &+ =39 Operatin Profits a(e ,een )luisDA&out $4< of )>P 500 as eported for G#-20#$

$ales: $%& '!!(ncome fromContin)ing

*perations: $%& '!!

$ales: $%& '!!e+cl)ding ,nancial

companies

(ncome from Contin)ing

*perations: $%& '!!

e+cl)ding ,nancial

companies

1 2 3 4

"!-" 12.3 52.4 12.5 38.0

"!-2 8.9 48.5 11.4 39.6

"!-# 8.5 30.8 9.6 25.1

"!-. 8.4 33.2 8.5 18.3

""-" 9.2 19.9 11.1 20.4

""-2 11.1 16.2 12.9 18.9

""-# 10.2 14.9 11.7 17.9

""-. 6.9 4.9 8.1 7.1

"2-" 5.4 6.2 5.7 4.4

"2-2 -0.1 0.0 -0.6 -0.8

"2-# 1.0 4.6 0.5 -1.7

"2-. #/# 0/! 2/1 ./!

13Q1 to date 1.5 3.5 1.9 1.1

Sources: Bloomberg News, MCMRG


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Modest Outlook for 1ominal 8%P 8rot Ma+ Also Appl+ to te,usiness )ales Pro;+: && ' changes


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%eceleration &+ ,usiness )ales Pro;+ )oftens Outlook for,usiness )pendin on Capital E/uipment: && ' changes


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Core Capital 8oods Orders )rink: &&' change, nsa


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ousehold Spending;


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Her+ )tron Correlation of 03= ,eteen te 6earl+ PercentCanes of a ,usiness )ales Pro;+ and Pri(ate-)ector Pa+rolls:&& ' changes


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1earl+ 4 6ears into te Current pturn" Pa+rolls )till *rail*eir Pre(ious C+cle i of Januar+ 200


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Emplo+ment 8rot as ,een )keed *oardorkers Aed 55 6ears and Older

Total o)sehold

$)r3ey 4mployment

4mployment: "6 to

'. years of age

4mployment: ''

years of age and

older

5)mer of Wor7ers

Aged '' years and

*lder as 8 Total

4mployment1 2 3 4

"99"2!!! ;pt)rn 1.6% 1.4% 2.6% 12%

2!!22!!1 ;pt)rn 1.2% 0.5% 5.3% 16%

C)rrent ;pt)rn 0.6% -0.2% 3.8% 22%

Average annualized % changes:


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ConsumersB E;ceptionall+ !o 'ncome E;pectationsei On etail )ales

Mo(in 5-+ear o&ser(ations


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Emplo+ment 'ncomeBs )u&par Pace !imits te pside foretail )ales 8rot: &earl& ' change of (o) * (o a)gs


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1um&er of 1e Car and !it *ruck )ales Are E;traordinaril+ !oCompared to eal %isposa&le Personal 'ncome


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1um&er of omes )old Are Her+ !o elati(e to eal %isposa&lePersonal 'ncome

Actual > pro?ected


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ecord ome Afforda&ilit+" 6et ome )ales Are ,ack ere *e+ erein #99-#99

Mo(in $ mont a(eraes


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For G#-20#$" Onl+ )ales of Autodealersips" estaurants and 1on-)tores *opped Core etail )alesB $32< Annual 8ain: && ' changes


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$nterest -ate 1utlooks Analytics, $nc? and@or its licensors and affiliates collecti%ely, M11#>S"(? All rights reser%ed? A $/*1-MA.$1/ C1/.A$/E# E-E$/ $S )-1.EC.E# 0

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#$SSEM$/A.E#, -E#$S.-$0.E# 1- -ES1#, 1- S.1-E# *1- S0SEE/. SE *1- A/ SC )-)1SE, $/ B1E 1- $/ )A-., $/ A/ *1-M 1- MA//E- 1-

0 A/ MEA/S BA.S1EVE-, 0 A/ )E-S1/ B$.1. M11#>S )-$1- B-$..E/ C1/SE/.? All information contained herein is otained y M11#>S from sources

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damages, resulting from the use of or inaility to use, any such information? .he credit ratings, financial reporting analysis, pro3ections, and other oser%ations, if any, constituting part

of the information contained herein are, and must e construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold anysecurities? /1 BA--A/., EF)-ESS 1- $M)$E#, AS .1 .E ACC-AC, .$ME$/ESS, C1M)E.E/ESS, ME-CA/.A0$$. 1- *$./ESS *1- A/ )A-.$CA-

)-)1SE 1* A/ SC -A.$/& 1- 1.E- 1)$/$1/ 1- $/*1-MA.$1/ $S &$VE/ 1- MA#E 0 M11#>S $/ A/ *1-M 1- MA//E- BA.S1EVE-? Each rating or

other opinion must e weighed solely as one factor in any in%estment decision made y or on ehalf of any user of the information contained herein, and each such user must

accordingly make its own study and e%aluation of each security and of each issuer and guarantor of, and each pro%ider of credit support for, each security that it may consider

purchasing, holding, or selling?


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Panel %iscussion%e&t 'ssuers Perspecti(e: )ector Hies I

)pecter of risin rates" curse or &lessinKL


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*imot+ ,lake


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40


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41

B)dget press)res persist d)e to =ea7 ta+re3en)e trend

2004 2005 2006 2007 2008 2009 2010 2011 2012

300

400

500

600

700

800

900

>ocal ta+ re3en)e do=nt)rn came later =ith =ea7er reco3ery

tate a) eceipts ocal a) eceipts

ource/ .. ensus ureau


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42

M)nicipal mar7et iss)ance s)ppressed in pastt=o years

2004 2005 2006 2007 2008 2009 2010 2011 2012

0

50

100

150

200

250

300

350

400

450

500

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%>o= rates sp)r re,nancing )t ne= money iss)ance do=n sharply

e' Mone# e$une ombine aa MM 20-ear ate

ource/ .. ensus ureau( !omson Municipal Market ata


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Cris Padett


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44

Market access remains robust, stron& eman e"ience b# lo' #ielsacross t!e e"era&e :inance ratin& spectrum. oan issuance is particularl#stron&( per!aps as in"estors e"aluate t!e risk o$ risin& interest rates.

ase on our o"enant ;


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45

>e3eraged i)idity Co3enant $tress (nde+es Are >eading

(ndicators of Changes in the @efa)lt Rateiuiit#-tress ne) remains at all time lo'( 'ell belo' !istorical

a"era&e


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46

nstitutional co"-lite loan "olume 'as si&ni+cant at close to A80 billion $or 1B2013. !is

compares to Cust o"er A80 billion $or all o$ 2012. o" lite loans in comple) capital structures are e)pecte to isproportionatel# !urt

bon!oler reco"er# because o$ si&ni+cant ebt cus!ion $or secure leners.

ource/ Moo#*s n"estors er"ice, ata $rom Moo#*s ltimate eco"er# atabase( '!ic! inclues about 1(000 e$aults o$ non+nancial companies atin& back to1988.

>e3eraged ite >oans


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Pilip .i&el


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48

)ector atins MarketFundamentals

-etail Stale Stale

1ffice Stale Stale

$ndustrial Stale Stale

Multifamily Stale )ositi%e

ealthcare Stale Stale

odging Stale Stale

*)tloo7s for &roperty $ectors


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49

$ector $trengths

Dlat$orms are stron&er t!an e"er/ Es( particularl# in"estment &rae(continue to e)pan in si>e( scope an i"ersit# '!ile cullin& oler( lessproucti"e assets

Man# Es !a"e aopte a Fback to basicsG business strate t!rou&!simpli+e business moels( '!ic! pro"ies increase transparenc#

iuiit# is stron&/ mana&eable( near-term ebt maturities( ample bank linecapacit#( lar&e unencumbere asset pools( an access to all capital marketuarants

:inancial =e)ibilit# ue to balance s!eet stren&t!

;peratin& $unamentals are trackin& t!e .. econom# as it continues to &ro'- espite .. +scal rama


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50

$e)estration and Rising (nterest Rates

euestration an ot!er +scal ra&sH penin& cuts

EIects 'ill be $elt most se"erel# in 2B an 3B

H a) increases

Fstren&t!G in consumer spenin& urin& B1 ri"en b# !i&!er utilities spenin&, impact e)pecteto become more apparent in 2B

H Iorable are ct Dotential impeiment $or emplo#ment &ro't! in retail( leisure( !ospitalit# an pro$essional

ser"ices inustries

H ebt eilin& b# u&ust

isin& nterest ates

Hu


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51

43ol3ing B)siness &latforms and Gro=th

eucin& non-strate&ic( omestic Coint "entures

E)itin& non-core businesses

ar&etin& narro'er( more ominant markets

E n"estment i"ersi+cation an Empo'erment ct o$ 2007 JEK

JeKe"elopment

H Dipelines &re' in multi-$amil#( inustrial an oe an associate business risk

nternational n"estment

H ;$ten t!rou&! Ls or $uns( but seein& more '!ole in"estment

H :ocus on earnin&s potential( plat$orm e)pansion "s. transparenc#( business risk(control


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Al emea


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53

;$ C>* (ss)ance *3er Timean)ary 2!"2 May 2!"#

40909 40940 40969 41000 41030 41061 41091 41122 41153 41183 41214 41244 41275 41306 41334 41365 41395A0

A2(000

A4(000

A6(000

A8(000

A10(000

A12(000

A14(000

0

5

10

15

20

25

30

2(4006

EIect i"e ate ar&et Dar JAMi lK N o$ eals

ate

0

50

100

150

200

Aaa C>* $preads *3er Timean)ary 2!"2 > TRA5C4$

;E E 0.25%

:E E 1.90%

(54$TM45TGRA@4

;E E 0.08%

:E E 0.78%

Q otal o$ 4267 tranc!es since 1993.

Source: Moody's Investors Service


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54

Dey Metrics $ho= C>*s Are $tronger


2000

2100

2200

2300

2400

2500

2600

2700

2800

2900

3000

110.00

112.00

114.00

116.00

118.00

120.00

122.00

124.00

126.00

128.00

130.00

;$ C>* A3erage WAR< and $enior *C >e3el 6y Eear

?: enior ; JMeianK

?: enior ;


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55

oan &erformance


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 otalsA0

A100

A200

A300

istorical Ref)nding 5eeds &ro,le By Mat)rity

(n Billions of ;$@

41670

41639

41608

41578

41547

41517

41486

41455

41425

41394

41364

41333

41305

41274

41243

41213

41182

41152

41121

41090

41060

41029

40999

40968

40939

0%

2%

4%

6%

8%

10%ctual aseline :orecast

Dessimistic :orecast ;ptimistic :orecast

;/$/ Trailing "2Month $pec)lati3eGrade @efa)lt Rate*3er Time



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56

Moo#*s n"estors er"ice is t!e source $or all numbers( $acts( an +&ures presente int!is report( unless ot!er'ise note.


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57

Panel: %e&t 'ssuers Perspecti(e:

)ector Hies I )pecter ofrisin rates" curse or &lessinKL

%aniel )errao" AssociateManain %irector" Manaed 'n(estments ModeratorN

*imot+ ,lake" Manain %irector" Pu&lic Finance 8roup

Pilip .i&el" )enior Hice President" E'*7s

Cris Padett" )enior Hice President" !e(erae FinanceAl emea" )enior Hice President" C!O7s


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58

Brea7


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!i/uidit+ 'mpact: 1e %irections for

Cas 'n(estors in a Canin

En(ironmento&ert Calla+" Hice President and )enior Anal+st - Manaed 'n(estments


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60

MM


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61

isin& ates( ?!enR

1


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62

>o= (nterest Rates 4n3ironment to &ersistthro)gh4nd of 2!".

7?7

7?e lenin& b# MM:s


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78

e&ulator# e$orm

3

Timeline of Dey Money Mar7et


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79

Timeline of Dey Money Mar7et


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80

&roposed Reforms 5o3 2!"2H

on"ert to :loatin& ( e)ception H reasur# MM:s

*R

Maintain onstant (

H @ol apital eser"es

H euire eemption @olback

esponses to :; MM: Droposals

Broad Resistance to 5A Capital andoldac7

ource/ :inancial tabilit# ;"ersi&!t ommittee J:;K


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81

What


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82

al)e &roposition of MM< Co)ld e Changing

2#8

".8

182#8

##8

o bearin& onor&ani>ations'illin&ness toin"est

Monitor an sell$uns i$S'!en $alls belo' A1

top n"estin& butmaintain !olin&s

top in"estin&an reuce butnot eliminate!olin&s

top in"estin&

an i"est o$ all!olin&s

2!8

1830%

.#8



top in"estin&an reuce butnot eliminate!olin&s

top in"estin&an i"est o$ all!olin&s

#.8

""825%

#!8



top in"estin& anreuce but noteliminate !olin&s

top in"estin& ani"est o$ all!olin&s

ikel# esponse to ikel# esponse to @olback

ikel# esponse to apitaleuirements

ource/ ssociation o$ :inancial Dro$essionals

Cash


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Moodys Asset Management Conference: Will There Be AGreat Rotation? 83

Cash


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e' irections $or as!

n"estors

4

i i f h


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5e= @irections for Cash (n3estors

J Oo irect

J eparatel# mana&e accounts

J o' urationS ltra !ort on :uns

J ank eposit Droucts

J E:s


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or+ Calla+

K8 686


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Asset Class Perspecti(es: Closed

End Funds I Can *e Carr+ *rade

Carr+ OnK1eal Epstein" Hice President and )enior Credit Officer - Manaed 'n(estments

C4< C h C T d C * ?


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C4


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ecent Der$ormance

1

Wh t f l l d C4< f ?


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What f)els le3eraged C4< performance?

Der$ormance o$ unerl#in& asset classes Hboosts

carcit# o$ port$olio assets H sustains premium pricin&

n"estors* esire to !ol !i&!er-#ielin& securities H reucestrain& iscounts

lope o$ #iel cur"e H $uels carr# trae( au&ments $un

income.

ll t!ese impacts are Fcreit positi"eG $or in"estors in E:le"era&eT

Wh t f l l d C4< f ?


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What f)els le3eraged C4< performance?

ut '!at i$ monetar# polic# is t!e source o$ t!ese

Fbene+tsFR

&erformance of C4< e ities ear to date


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&erformance of C4< e)ities year to date

Buantitati"e easin&supports markets( keepin&interest rates lo'.

eman $or relati"el#-!i&!er #ielin&

in"estments( incluin&speculati"e-&rae +)eincome an i"ien-pa#in& euities

n=ation !e&es( incluin&

real estate( ener, metalsare in ecline.

:i)e ncome - a) E)empt

OlobalSnternational Euit#

:i)e ncome - a)able

Oeneral Euit#

0.0% 5.0% 10.0%

1.9%

2.3%

3.3%

6.3%

ource/ E:( Moo#*s. ?ei&!te a"era&e returns o$ unerl#in& ipper cate&ories to 17pril( comprisin& 625 $uns an A245 billion o$ net assets. .

Closed 4nd


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Closed 4nd


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Drouct cti"it#

2

&rod)ct Acti3ity: a)nches and Mergers


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&rod)ct Acti3ity: a)nches and Mergers

urrent D; acti"it# concentrate in ta)able +)e incomearea Je&.( DK

Mer&ers prominent amon& muni E:s H cost sa"in&s apositi"e

ome ri"ers/H eman $or unerl#in& asset class VW #iel( Fe)oticG

i"ersi+cation

H E: FcensusG H +rst mo"er a"anta&es

H ee to o"ercome s!ort-term per$ormance ra& o$ D;/

uner'riters* sprea impacts ( market iscountin& $urt!eraIects price.

H e"era&eable returns a"ailable( but market appears cro'e.

H Munis/ eclinin& port$olio income( as oler bons are calle

C4< (&* Acti3ity >ast $i+ Months Total K


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C4< (&* Acti3ity >ast $i+ Months Total KL"!/" illion

ource/ E:( E:onnect

M)nicipal C4< e3erage


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M)nicipal C4< e3erageConsolidation

Month ona Dremiumncome Municipal :unJXK

MD A51.00

Lan M(MD(

X?

u"een Mic!i&an Bualit#ncome Municipal :un

JMK(

MD(MD

A70.20


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e"era&e

3

Closed4nd e3erage $tr)ct)ral


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Closed4nd e3erage $tr)ct)ral>e3erage

ector OlobalSintl omestic E a)able : Muni0%

5%

10%

15%

20%25%

30%

35%

0

20

40

60

80

100

120140

160

180

200

21.1% 21.9%

24.6% 25.8%

29.9%

"era&e e"era&e :un ount

ource/ !omson-euters( Moo#*s. 357 $uns as o$ Marc! 2013.

$tate M)nicipal Bond e3erage


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$tate M)nicipal Bond e3erage

ZV 20%

20% ZV 30%

30% ZV 33%

33% ZV 36%

36% ZV 39%

39% ZV 42%

42% ZV 45%

0% 5% 10% 15% 20% 25% 30% 35% 40%

4.5%

5.8%

7.1%

31.4%

37.2%

14.1%

3.2%

ource/ Moo#*s. 161 rate state municipal-bon $uns as o$ Lanuar# 2013.

>e3erage Arithmetic


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101

>e3erage Arithmetic

V Jrport$olioH ile"era&eK Q Dort$olio S

rport$olioV 5.0%

ile"era&eV 0.75%e"era&e V 1.6V 6.8%

T*B >e3erage


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102

T*B >e3erage

J source o$ port$olio le"era&eJ rbitra&es t!e slope o$ #iel cur"e

J Economic break-e"en a $unction o$ costs o$ $unin& anpro&ram costs.

J ost o$ =oatin& rate issuance is/iel/ :M J23 bps as o$ 17 prilK [ 20 to 25 bps.ponsors!ip/ 30 to 60 bps. :Mll-in/ :M [ 50 to 85 bps.

J urrent lon&-term muni #iels e)cee 3%( total return R

T*B >e3erage


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103

T*B >e3erage

ource/ u"een n"estments

Eield C)r3e $hift Eear To @ate as Been


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104

Eield C)r3e $hift Eear To @ate as Been(nsigni,cant

0.250.5 1 2 3 4 5 7 9 10 12 14 15-0.5

0

0.5

1

1.5

2

2.5

3

3.5

12S31S2012

3S29S2013

!i$t

Muni Oeneral ;bli&ation [ ur"e

ource/ loomber&


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105

:inancial Mana&ement

4


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106


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107

ariale Rate @emand &referred $hares

ariable ate eman Dre$erre JDK s!ares are issueb# E:

ank enters into D Durc!ase &reements to pro"ieliuiit# support to t!e D s!ares.

!e liuiit# pro"ier a&rees to purc!ase an# rate s!arest!at !a"e been tenere $or an not success$ull#remarkete on t!e 7t! a# a$ter notice o$ tener.

!e D s!ares\ s!ort-term ratin&s are base on t!eliuiit# support $rom t!e D Durc!ase &reement

pro"ieri.e.( linke to t!e s!ort-term ratin& o$ t!e rele"ant bank

on&-term ratin&s are base on usual met!oolo

Ban7 credit press)re and R@& s)stit)tion


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108

Ban7 credit press)re and R@& s)stit)tion

atin& ction/ Moodys assigns Aa2N&"ratings to preferred sharesiss)ed y t=o 5e= ersey closedend f)nds managed y 5)3een

Olobal reit esearc! - 17 pr 2013

e' ork( pril 17( 2013 -- Moo#\s n"estors er"ice J]Moo#\s]K !as assi&nea2 lon&-term ratin&s an D-1 s!ort-term ratin&s to ariable ate eman

Dre$erre JDK s!ares issue b# t'o state-speci+c close-en $uns mana&eb# u"een :un "isors( Ju"eenK. o#al ank o$ anaa JK( actin&t!rou&! its ?:( e' ork( ranc! Ja3SD-1( stableK( !as entere into DDurc!ase &reements to pro"ie liuiit# support to t!e D s!ares.!e Ds!ares\ s!ort-term ratin&s are base on t!e liuiit# support $rom t!e DDurc!ase &reement pro"ier an are t!ere$ore linke to t!e s!ort-term ratin&

o$ t!e o#al ank o$ anaa. O

!e D s!ares issue b# L an BL 'ere e)c!an&e $or pre"iousl#outstanin& D s!ares 'it! a Durc!ase &reement t!at !a been pro"ie b#itibank( .. 3SD-2. pon t!e completion o$ t!e e)c!an&e( t!e ol D s!ares'ill be terminate an t!eir ratin&s 'it!ra'n.

M)nicipal Term Tr)st


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109

M)nicipal Term Tr)st

J rust matures on a ate certain Jei&!teen #earsK an ma#c!oose to tar&et liuiation at par.

J Dort$olio urations ma# be mana&e to minimi>e mismatc!o$ +nal "aluations an tar&et( J'it! no &uaranteeK.

J ttracti"e to $un in"estors concerne about secular turn in

interest rates

RRMT& Best of oth =orlds?


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110

RRMT& Best of oth =orlds?

atin& ction/ Moodys assigns an Aa" rating to Remar7etale arialeRate M)ni Term &referred$hares iss)ed y the Blac7Roc7 M)nicipal

Target Term Tr)st BTTH

Olobal reit esearc! - 10 Lan 2013

L1'! million ne= RMT& shares to e iss)ed

e' ork( Lanuar# 10( 2013 -- Moo#\s n"estors er"ice !as assi&ne a ratin& o$

a1 to emarketable ariable ate Muni erm Dre$erre !ares JMD !aresKissue b# t!e lackock Municipal ar&et erm rust JK(

escription o$ MD

!e MD are similar to ot!er municipal term pre$erre stock( '!ic! is issueb# municipal close-en $uns to le"era&e t!e returns earne b# t!eir common

s!are !olers.!e s!ares 'ill mature on 12S31S2030( '!ic! is t!e ate o$maturit# o$ t!e term trust.!e i"ien rate 'ill be set at t!e :M Municipal'ap ate plus an applicable sprea.!e securities can be remarkete e"er#si) mont!s(an a ne' applicable sprea ma# be set at eac! remarketin&.!eabilit# to remarket t!e s!ares can be at t!e option o$ t!e $un or t!e MDs!are!olers.


111/115

Moodys Asset Management Conference: Will There Be A

Great Rotation?111

1eal M Epstein" CFA

K8 686


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Panel %iscussion8reat otation: isks and eards Considered inMakin *e CallL

P l 8 t t ti i k d


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Moodys Asset Management Conference: Will There Be A

Great Rotation?113

Panel: 8reat otation: isks and

eards Considered in Makin*e CallL

%aniel )errao" AssociateManain %irector" Manaed 'n(estments ModeratorN

Micael Maier" )enior Fi;ed 'ncome )trateist" Han Eck Associates Corporation

!ea Modiliani" )enior Hice President" 1eu&erer ,erman 8roup" !!C

illiam *3 Me+ers" Manain %irector" 1u(een 'n(estments


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Asset Management Conference: Will There Be A Great

Rotation?

*ank 6ou

^ 2013 Moo#*s n"estors er"ice( nc. anSor its licensors an a


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ll in$ormation containe !erein is obtaine b# M;;* $rom sources belie"e b# it to be accurate an reliable. ecause o$ t!e possibilit# o$ !uman ormec!anical error as 'ell as ot!er $actors( !o'e"er( all in$ormation containe !erein is pro"ie F G 'it!out 'arrant# o$ an# kin. M;;\ aopts allnecessar# measures so t!at t!e in$ormation it uses in assi&nin& a creit ratin& is o$ su

Moody’s Asset Management Conference Will There Be a Great Rotation

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