ECB exit and higher US Treasury yields leading to less demand from abroad for US IG S billion 30 - 20 - 10 - 0 -10 -20 - -30 I When ECB put interest rates negative in 2014 the rest of the world started buying US credit... Net foreign purchases of US corporate bonds ...with ECB signaling OE exit foreigners are now net sellers of US credit 10 11 12 13 14 15 16 17 Source: Treasury, Haver Analytics, O5 Global Research a S billion - 30 - 25 - 20 15 10 05 - -5 - -10 Deutsche Bank Research Tram Stoic torsten.slokedb.com +1 212250-2155 Mardi 2018 Let us know if you would like to add a colleague to this distribution list. Torsten Stoic Ph.D. Chief International Economist Managing Director Deutsche Bank Securities 60 Wall Street New York, New York 10005 This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Please refer to https://db.com/disclosures for additional EU corporate and regulatory disclosures. 108 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0090689 CONFIDENTIAL SDNY_GM_00236873 EFTA01387650