Exhibit 83: Ratio of Municipal Bond Yields to Exhibit 84: Municipal Issuer Rating Changes Treasury Yields Stable revenue and spending discipline have led to recent Current municipal bond yields offer a larger valuation buffer issuer rating upgrades. to absorb risks than in the past. Ratio (%) Share of Rating Changes (%) mUpgrades m Downgrades 100 mCurrent mAverage Since 2000 © Average Since 1987 100 - 95 93 91 90 + 30 5 80 - 39 ss ue 0 SB ss ie en i “ 80 iD 60 50 70 40 30 61 51 50 60 - 20 44 44 46 37 10 4 50 0 5-Year Ratio 10-Year Ratio 3014 4014 1015 2015 3015 4015 1016 2016 3016 Data as of December 31, 2016. Data as of 03 2016. Source: Investment Strategy Group, Bloomberg, Thomson MMD. Source: Investment Strategy Group, Moody’s. benchmark duration. Given their important the top annual returns of all time for the asset portfolio hedging characteristics, municipal bonds class. What makes this performance even more should remain the bedrock of the “sleep-well” impressive is that high yield was down about 5% portion of a US-based client’s portfolio. at its worst point in early 2016. The same can be said for high yield municipal But these sizable gains have come at a cost. bonds. Despite their almost 10-year duration, these | Spreads—which compensate investors for the risk bonds currently offer attractive spreads of close to —_ of default losses—now stand well below their long- 3%, a level that has been higher only 29% of the term average. In fact, the level of spreads has been time since 2000. This spread provides a substantial lower only a third of the time in the last 30 years. buffer that could partially offset higher Treasury Moreover, yields have fallen from above 10% yields, enabling the high yield municipal market early last year to less than 7% now, diminishing to deliver positive returns of around 4% in our the allure of these bonds to investors searching for base case. Therefore, we recommend clients stay high returns. invested at their customized strategic