Large Bank Supervision Forum 2023

Characteristics of Senior Secured Corporate Loans

Mid to Large Sized Borrowers

All Loans Completely Re-Underwritten

Floating Rate Loans

Senior Secured Corporate Loans

Originated by Money Center Banks

Traded in the Secondary Market

64 Industry Sectors

Shared National Credits

Senior Debt First Priority Lien

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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Par Amount of Outstanding Senior Secured Loans

 Large, mature market primarily used by borrowers to raise funds for M&A, capital growth and recapitalizations  Broad investor/lender base including traditional commercial banks, retail mutual funds, credit funds, pension plans and insurance companies

7.85% CAGR since Great Recession

Morningstar LSTA Index January 1, 1997 to December 31, 2022

1 : Par Amount Outstanding ($ Billions)

1,413

1,341

1,193 1,193

1,147

955

872 881

831

682

557 596 529 504 516 552

400

191 248

101 104 112 135

29 55 90

1 - The Morningstar ® LSTA ® Leveraged Index is an unmanaged total return index that captures accrued interest, repayments, and market value changes. Investors cannot invest directly in an index. Source: LCD.

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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