The loan market cooled slightly in February in response to more plentiful supply. Still, with demand robust, conditions remained highly charged. In early March, the market heated up again. Participants remain constructive on the loan market, though the usual macro concerns persist. Check out LCD's new, free web sites, LeveragedLoan.com and HighYieldBond.com http://www.leveragedloan.com http://www.highyieldbond.com/ * Job postings * Online Loan Market and High Yield Primer * News and analysis * Market Stats See the video presentation: http://youtu.be/4xjijq-tqfg Connect with LCD Facebook: http://www.lcdcomps.com/facebook Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis. LinkedIn: http://www.lcdcomps.com/linkedin There are over 10,000 market contacts in LCD's Leveraged Loan Group Twitter: http://www.twitter.com/lcdnews News, commentary, other leveraged finance info Web: http://www.lcdcomps.com Contact: marc_auerbach@spcapitaliq.com

1. Text
US Leveraged Finance Market Update
March, 2013
Steve Miller - Managing Director

2. New-Issue Loan Volume – by Year
$550B
Text
Pro Rata
Institutional
$440B
$330B
$220B
$110B
$0B
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2
3
1
1
/7/
/7/
-3
-3
Source: LCD - Leveraged Commentary & Data
1/1
1/1

3. S&P/LSTA Index – Average Price
98
96
94
91
89
2/11 4/11 6/11 8/11 10/11 12/11 2/12 4/12 6/12 8/12 10/12 12/12 2/13
Source: LCD - Leveraged Commentary & Data

4. Visible Loan Flows
$10B
CLO Issuance
Loan Mutual Flows
$7B
Text
$5B
$2B
-$1B
2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13
Source: LCD - Leveraged Commentary & Data, EPFR

5. S&P/LSTA Index Loans Outstanding
$565B
$552B
$539B
$526B
$513B
$500B
5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13
Source: LCD - Leveraged Commentary & Data

6. New-Issue First-Lien Covenant-Lite Loan Volume – by Year
$100B 60%
Volume
Percent
$75B 45%
$50B 30%
$25B 15%
$0B 0%
2004 2005 2006 2007 2008 2009 2010 2011 2012
2
3
1
1
/7/
/7/
-3
-3
Source: LCD - Leveraged Commentary & Data
1/1
1/1

7. Average New-Issue Clearing Yield of First Lien Loans
All-BB
All-B
9%
8%
7%
5%
4%
3%
2/11 4/11 6/11 8/11 10/11 12/11 2/12 4/12 6/12 8/12 10/12 12/12 2/13
Source: LCD - Leveraged Commentary & Data

8. Repricing Volume
$50B
$40B
$30B
$20B
$10B
$0B
3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/1211/1212/12 1/13 2/13
Source: LCD - Leveraged Commentary & Data

9. Loan Default Rate
12%
10%
7%
5%
2%
0%
12/98 8/00 4/02 12/03 8/05 4/07 12/08 8/10 2/13
Source: LCD - Leveraged Commentary & Data

10. Loan Market – Outlook
• Robust near-term deal calendar, intermediate term more hazy
• Demand outlook also strong:
> CLOs issuance bounces back
> Retail flows running hot
> Institutional allocations also
• Macro concerns persist
Source: LCD - Leveraged Commentary & Data

11. Follow LCD
www.lcdcomps.com
news, analysis, research, archives
www.linkedin.com/groups/LCD-Leveraged-Loan-Group-2092432
LCD Leveraged Loan Group ... 10,000+ contacts
www.twitter.com/lcdnews
Headlines, market chatter
www.facebook.com/lcdcomps/
Daily Playbook, headlines, video analysis
www.leveragedloan.com
Free website covering the leveraged loan market
www.highyieldbond.com
Free website covering the HY market

12. Copyright 2012 Standard & Poor's, a division of The McGraw-Hill Companies, Inc.
No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be
modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission
of S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third party providers, as well as their directors, officers,
shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not
responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data
input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT
NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE
ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY
SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory,
punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in
connection with any use of the Content even if advised of the possibility of such damages.
Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact or
recommendations to purchase, hold, or sell any securities or to make any investment decisions. S&P assumes no obligation to update the Content following
publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management,
employees, advisors and/or clients when making investment and other business decisions. S&P’s opinions and analyses do not address the suitability of any security.
S&P does not act as a fiduciary or an investment advisor. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit
and undertakes no duty of due diligence or independent verification of any information it receives.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a
result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain
the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves
the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge),
and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third
party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.