HY Default Insights

Credit Market Research
www.fitchratings.com May 28, 2014

Corporates / U.S.
Fitch U.S. High Yield Default Insight
Spotlight on LBO Defaults
Special Report

EFH-Inspired LBO Focus: A long-simmering bankruptcy filing from Energy Future Holdings
(EFH) propelled both the U.S. high yield and leveraged loan trailing 12-month default rates to
multi-year highs of 2.8% and 3.9% in April. EFHs filing is notable both for its size and status as
the largest leveraged buyout (LBO) default to date. However, it is one of 10 LBO-related
company defaults so far in 2014 compared with 11 for all of 2013. Excluding EFH, this years
batch of failed LBOs has affected $6.5 billion in bonds and institutional loans. The Texas giant
towers over its peers at $35.8 billion and pushes the tally of LBO associated loan and bond
defaults to 29% of total defaults from 2007 to the present.
$120 Billion Boom Tab: LBO transactions surged in the years prior to the financial crisis, with
20042007 dedicated high yield and leveraged loan issuance approaching half a trillion dollars,
according to Thomson Reuters LPC and Bank of America data. LBO defaults from that period
have to date affected $55.3 billion in bonds and $64.5 billion in institutional leveraged loans. Of
the aggregate $120 billion, 63% consists of loans and bonds sold 20042007, and the
remainder is predominantly original LBO debt that was refinanced 20082014.
Refinancing Reprieve for Some: Most LBO restructuring activity occurred in 20082009, but
as with EFH, refinancing offered some troubled issuers a longer lifeline. For example,
Momentive Performance Materials Inc., a 2006 LBO, also filed in April. The specialty chemicals
company refinanced the majority of its 2006 loans into bonds 20102012 before defaulting this
year on $2.9 billion.
No Discernable Recovery Bias: LBOs have produced loan and bond price-based recovery
outcomes similar to non-LBOs. The average 30-day postdefault recovery price on LBO bonds
20072014 was 47% of par versus a non-LBO rate of 45%. Similarly, across institutional first-
lien leveraged loans, the 30-day postdefault LBO price was 61% versus 63% across non-
LBOs. In addition for a group of 95 companies with price data at emergence from bankruptcy,
recovery outcomes on first-lien LBO/non-LBO loans were comparable at 74% of par.
On the Radar: April defaults included EFH, Momentive Performance, J ames River Coal and
Guitar Center, bringing the year to date high yield default tally to 15 issuers on $22.4 billion in
bonds versus an issuer count of 13 and dollar value of $5.9 billion in the first four months of
2013. May defaults have thus far included Allen Systems Group Inc. and River Rock
Entertainment Inc. At midmonth, approximately $43 billion in bonds were trading at 90% of par
or less a relatively modest 3.8% of the $1.1 trillion in bonds with price data. On the other end
of the spectrum, however, close to a trillion in bonds traded above par, including 73% of
outstanding bonds rated CCC or lower.
Priced for Perfection: The insatiable demand for yield product in a persistently low interest
rate environment continues to drive investors into speculative grade loans and bonds. The
supply/demand imbalance has allowed issuers to extend maturities and lower their borrowing
costs and this in turn has put downward pressure on the default rate. However, with
$403 billion in B or lower rated bonds in circulation, the absolute level of credit risk in the
market remains significant. The B or lower pool stood at $354 billion at year-end 2009,
contracted modestly in 2010 and 2011, and has since grown steadily larger from $329 billion at
the end of 2011 to its current size.

Related Research
Leveraged Finance Annual Manual
(April 2014)
Calmer Macro Environment Fails to
Move the Needle on Investor
Attachment to Low Interest Rates
Fitch Ratings/Fixed Income Forum
Survey (April 2014)
Fitch Fundamentals Index 1Q14
(April 2014)
Fitch U.S. Leveraged Loan Default
Insight Loan Market Gathers
Momentum (March 2014)
2014 Outlook (December 2013)
The Impact of Industry Selection
on Default Risk (March 2013)

Anal ysts
Mariarosa Verde
+1 212 908-0791
mariarosa.verde@fitchratings.com
Eric Rosenthal
+1 212 908-0286
eric.rosenthal@fitchratings.com
U.S. Corporates
Mike Simonton
+1 312 368-3138
mike.simonton@fitchratings.com


Fitch U.S. High Yield Default Insight 2
May 28, 2014
LBO Default Focus
LBO Recovery Focus
High Yield 30-Day Postdefault
Price-Based Recovery Rates
(%) LBO Non-LBO
2007 33.1 67.8
2008 11.0 49.0
2009 23.5 35.9
2010 48.8 57.1
2011 42.1 67.6
2012 46.5 55.2
2013 70.0 61.2
April 2014 YTD 68.5 11.1
20072014 47.2 44.9
Note: Based on market prices.
Source: Fitch Ratings, Advantage Data.

Institutional Leveraged Loan
30-Day Postdefault Price-Based
Recovery Rates

First Li en Second Lien
(%) LBO Non-LBO LBO Non-LBO
2007 88.8 41.3
2008 36.6 65.2 9.4 21.2
2009 42.0 59.4 18.9 34.6
2010 81.2 76.7 15.8 8.7
2011 57.9 62.5 24.6 10.9
2012 63.9 67.0 8.5 56.9
2013 77.5 60.4 40.0
April 2014 YTD 76.1 56.8
20072014 60.6 62.8 15.1 32.4
Note: Based on market prices.
Source: Fitch Ratings, Thomson Reuters LPC.

0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012 2013 2014
YTD
($ Bil.)
LBO Non-LBO
Source: Fitch U.S. High Yield Default Index.
High Yield Bond Defaults
0
20
40
60
80
2007 2008 2009 2010 2011 2012 2013 2014
YTD
($ Bil.)
LBO Non-LBO
Source: Fitch U.S. Leveraged Loan Default Index.
Institutional Leveraged Loan Defaults
LBO Other
15%
LBO EFH
7%
Non-LBO
78%
High Yield Bond Defaults: 2007April
2014
($264 Billion)
LBO Other
29%
LBO EFH
12%
Non-LBO
59%
Institutional Leveraged Loan
Defaults: 2007April 2014
($161 Billion)

May 28, 2014

Top 10 High Yield LBO Defaults: 2007 April 2014

($ Bi l.) LBO Year Defaul t Year(s)
Energy Future Holdings 16.6 2007 2012, 2013, 2014
NewPage Corp. 3.2 2005 2009, 2011
Freescale Semiconductor Inc. 3.0 2006 2009
Momentive Performance Materials Inc. 2.9 2006 2009, 2014
Capmark Financial Group 2.3 2005 2009
Station Casino Inc. 2.3 2007 2009
Smurfit-Stone Container Corp. 2.3 2006 2009
Cengage Learning Acquisitions Inc. 1.9 2007 2013
Nortek Inc. 1.8 2004 2009
Tribune Co. 1.3 2007 2008

Top 10 Leveraged Loan LBO Defaults: 2007 April 2014

($ Bi l.) LBO Year Defaul t Year(s)
Energy Future Holdings 19.2 2007 2014
Tribune Co. 6.5 2007 2008
Chrysler Financial LLC 6.0 2007 2009
Cengage Learning Acquisitions Inc. 3.9 2007 2013
Metro-Goldwyn-Mayer 3.8 2005 2009
NewPage Corp. 1.6 2005 2011
Hawker Beechcraft Acquisition Co. 1.5 2007 2012
Reader's Digest 1.3 2007 2009
Smurfit-Stone Container Corp. 1.3 2006 2009
Masonite International Corp. 1.2 2005 2008


May 28, 2014
Default Watch
Distribution of Defaults by Source

Par Val ue
($ Bi l.) (%) Issuers (%) Issues (%)
2013
Chapter 11 Filing 10.0 53.9 15 41.7 24 42.9
Missed Payment 4.8 26.1 13 36.1 19 33.9
Distressed Exchange 3.7 20.0 8 22.2 13 23.2
Total 18.5 100.0 36 100.0 56 100.0

April 2014 YTD

Chapter 11 Filing 21.3 95.0 10 66.7 29 85.3
Distressed Exchange 0.7 3.0 3 20.0 3 8.8
Missed Payment 0.5 2.1 2 13.3 2 5.9
Total 22.4 100.0 15 100.0 34 100.0
YTD Year to date.

Related Criteria
Corporate Rating Methodology:
Including Short-Term Ratings and
Parent and Subsidiary Linkage
(August 2013)

Exhibits Index
Default Watch ........................................ 4
Historical Default and Recovery ............ 9
Credit Availability Indicators ................ 21
Issuance Trends and Vintage
Default Rates ...................................... 22
High Yield Market Profile ..................... 24
0
2
4
6
8
10
12
14
16
(%)
Fitch U.S. High Yield Trailing 12-Month Default Rate
0
10
20
30
40
50
60
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
($ Mil.)
Default Volume ($ Mil.) Issuer Count
Fitch U.S. High Yield Default Index Quarterly Issuer and Volume Trends
(No.)

May 28, 2014
Industry Default Rates
(%)

Average Annual

April 2014
Industry 19802013 2010 2011 2012 2013 YTD
Automotive 6.4 0.5 0.8 3.1
Banking and Finance 6.3 1.5 0.5 3.3
Broadcasting and Media 4.9 5.5 0.3 2.0 6.7
Building and Materials 4.0 2.2 1.3 4.7
Cable 4.4
Chemicals 2.5 1.0 11.4
Computers and Electronics 2.4 0.3 0.3
Consumer Products 2.9 4.7
Energy 2.1 1.1 2.6 1.2 2.8 0.3
Food, Beverage, and Tobacco 3.2 1.5 1.2 0.7
Gaming, Lodging, and Restaurants 4.1 1.3 1.7 2.8 1.1
Healthcare and Pharmaceutical 1.9 1.8 0.5 1.3
Industrial/Manufacturing 2.7 0.8 0.7
Insurance 4.3
Leisure and Entertainment 5.0 10.0 0.9
Metals and Mining 3.2 1.2 0.3 0.6 0.8 0.5
Paper and Containers 4.8 1.0 10.3 7.7 0.9
Real Estate 1.8
Retail 3.6 3.0 2.0 1.0 1.5
Services and Miscellaneous 1.8 0.3 0.8 0.5 0.4
Supermarkets and Drug Stores 4.7 3.1
Telecommunication 7.8 1.2 0.6 0.3 0.6 0.6
Textiles and Furniture 6.0
Transportation 5.9 1.7 7.4 4.4
Utilities, Power, and Gas 5.6 5.9 10.5 2.3 30.1
Total Index 4.3 1.3 1.5 1.9 1.5 1.7


May 28, 2014
0
10
20
30
40
50
60
70
80
<80 >8090 >90100 >100
(%)
'CCC' or Lower Par Value Price Distribution
12/31/13 5/15/14
Source: Fitch U.S. High Yield Default Index, Bloomberg, Advantage Data.
0
20
40
60
80
100
<80 >8090 >90100 >100
(%)
High Yield Bond Market Price Distribution
Note: Based on $1.11 trillion in high yield bonds with price data. Prices as of May 15.

May 28, 2014
List of U.S. High Yield Bond Defaults on Trailing 12-Month Basis
Month Issuer
Par Value
($ Mil.) Defaul t Date Defaul t Source Industry
May 2013 Lupatech Finance Ltd 275.0 05/10/13 Missed Payment Metals and Mining

Urbi Desarrollos Urbanos 950.0 05/19/13 Missed Payment Building and Materials

Physiotherapy Associates Holdings Inc. 210.0 05/31/13 Missed Payment Healthcare and Pharmaceutical

Subtotal 1,435.0

J une 2013 Exide Technologies 675.0 06/10/13 Chapter 11 Filing Automotive

Oncure Holdings Inc. 210.0 06/14/13 Chapter 11 Filing Healthcare and Pharmaceutical

AGY Holding Corp. 172.0 06/15/13 Missed Payment Industrial/Manufacturing

Subtotal 1,057.0

J uly 2013 Cengage Learning Acquisitions Inc. 1,847.7 07/02/13 Chapter 11 Filing Broadcasting and Media

Cengage Learning Holdco 73.8 07/02/13 Chapter 11 Filing Broadcasting and Media

Desarrolladora Homex SA 900.0 07/11/13 Missed Payment Building and Materials

Maxcom Telecomunicaciones 199.5 07/15/13 Missed Payment Telecommunication

Corporacion GEO SAB de CV 704.2 07/30/13 Missed Payment Building and Materials

Subtotal 3,725.2

August 2013 Rural Metro Corp. 308.0 08/04/13 Chapter 11 Filing Services and Miscellaneous

Subtotal 308.0

September 2013 Green Field Energy Services 250.0 09/04/13 Missed Payment Energy

Lone Pine Resources 195.0 09/15/13 Missed Payment Energy

FriendFinder Network 533.2 09/17/13 Chapter 11 Filing Leisure and Entertainment

Subtotal 978.2

October 2013 American Media Inc. 94.3 10/02/13 Distressed Exchange Broadcasting and Media

Winsway Coking Coal Holdings 151.2 10/10/13 Distressed Exchange Metals and Mining

Savient Pharmaceuticals 170.9 10/14/13 Chapter 11 Filing Healthcare and Pharmaceutical

OGX Petroleo e Gas Participaes SA 3,626.0 10/30/13 Chapter 11 Filing Energy

Subtotal 4,042.4

November 2013 No Default Activity

December 2013 Affinion Group Holdings 292.8 12/09/13 Distressed Exchange Broadcasting and Media

Affinion Group Inc. 352.9 12/09/13 Distressed Exchange Broadcasting and Media

Milagro Oil & Gas 250.0 12/16/13 Missed Payment Energy

China Forestry Holdings 180.0 12/17/13 Missed Payment Paper and Containers

Subtotal 1,075.7

J anuary 2014 No Default Activity

February 2014 Brookstone Co. 125.6 02/15/14 Missed Payment Retail

Oceanografia SA de CV 335.0 02/15/14 Missed Payment Energy

Subtotal 460.6

March 2014 Sorenson Communications Inc. 735.0 03/03/14 Chapter 11 Filing Telecommunication

Aralco Finance SA 250.0 03/05/14 Chapter 11 Filing Food, Beverage, and Tobacco

Travelport LLC 135.0 03/05/14 Distressed Exchange Leisure and Entertainment

MModal Inc. 250.0 03/20/14 Chapter 11 Filing Services and Miscellaneous

Global Geophysical Services Inc. 250.0 03/25/14 Chapter 11 Filing Energy

Subtotal 1,620.0

April 2014
a
Guitar Center Holdings 434.9 04/03/14 Distressed Exchange Retail
Guitar Center Inc. 100.0 04/03/14 Distressed Exchange Retail
J ames River Coal Co. 270.0 04/07/14 Chapter 11 Filing Metals and Mining
Momentive Performance Materials Inc. 2,892.6 04/13/14 Chapter 11 Filing Chemicals
Energy Future Competitive Holdings Co. 34.6 04/29/14 Chapter 11 Filing Utilities, Power, and Gas
Energy Future Holdings Corp. 677.5 04/29/14 Chapter 11 Filing Utilities, Power, and Gas
Energy Future Intermediate Holding Co. 7,707.4 04/29/14 Chapter 11 Filing Utilities, Power, and Gas
Texas Competitive Electric Holdings Co. 8,195.6 04/29/14 Chapter 11 Filing Utilities, Power, and Gas
Subtotal 20,312.6
a
Defaults in the pipeline as of May 15 include Allen Systems Group and River Rock Entertainment.


May 28, 2014

Recovery Rates by Seniority
(%) Weighted Avg. Recovery Rate Median Recovery Rate
a
No. of Issues
2013

Senior Secured 65.7 71.1 26
Senior Unsecured 30.0 27.1 25
Senior Subordinated 67.0 45.6 3
Total Defaulted Issues 47.7 54.4 54

April 2014 YTD

Senior Secured 89.4 90.6 15
Senior Unsecured 33.6 14.6 14
Senior Subordinated
b
48.4 65.8 2
Total Defaulted Issues 67.2 56.4 31
a
Similar seniorities per issuer collapsed into one observation.
b
Senior subordinated issue has one distressed debt
exchange issue. Prices as of May 15.
Source: Fitch U.S. High Yield Default Index, Advantage Data.

Recovery Rates by Industry
Industry Weighted Avg. Recovery Rate (%) No. of Issues
2013

Utilities, Power, and Gas 112.7 3
Computers and Electronics 105.4 1
Leisure and Entertainment 81.5 6
Food, Beverage, and Tobacco 77.1 1
Telecommunication 68.8 3
Healthcare and Pharmaceutical 61.6 4
Automotive 59.8 1
Industrial/Manufacturing 54.1 1
Broadcasting and Media 50.0 10
Paper and Containers 38.1 1
Metals and Mining 29.5 2
Services and Miscellaneous 27.6 2
Energy 25.1 8
Gaming, Lodging, and Restaurants 24.2 2
Building and Materials 23.7 9
Total Defaulted Issues 47.7 54

April 2014 YTD

Leisure and Entertainment 102.1 1
Telecommunication 90.6 1
Chemicals 85.6 4
Utilities, Power, and Gas 67.1 18
Retail 50.9 1
Energy 33.0 3
Services and Miscellaneous 14.6 1
Metals and Mining 11.1 1
Food, Beverage, and Tobacco 9.6 1
Total Defaulted Issues 67.2 31
Note: Prices as of May 15.

66.1
57.0
62.8
51.2
64.8
26.4
51.5
73.4
60.6
38.0
27.1
53.9
68.6
75.9
25.0
58.9
47.4
53.9
29.6
36.2
61.2
57.2
27.6
74.4
50.9
59.3
8 9
33
19
14
8
17
10
18
18
8
8
23
0
5
10
15
20
25
30
35
0
10
20
30
40
50
60
70
80
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
(%)
Weighted Avg. Recovery Rate Median Recovery Rate No. of Issues (Right Axis)
a
Similar seniorities collapsed into one observation. Note: Prices as of May 15.
Trends in Recovery Rates
(No. of Issues)
a

May 28, 2014
Historical Default and Recovery
0
1
2
3
4
5
BB Default Rate Cyclicality
a
a
Default rates based on market composites.
Source: Fitch Ratings.
(%)
Benign Environment Avg. Default Rate
Annual Default Rate
Avg. Annual Default Rate
Stress Environment Avg. Default Rate
0
2
4
6
8
10
12
14
B Default Rate Cyclicality
a
a
(%)
Annual Default Rate
0
10
20
30
40
50
CCC Default Rate Cyclicality
a
a
(%)
Annual Default Rate
243
452
665
338
256
691
322
233
835
786
340
548
642
515
0
100
200
300
400
500
600
700
800
900
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
($ Mil.)
Average Par Value of Bond Defaults Per Issuer 20002013

May 28, 2014
0
2
4
6
8
10
12
14
16
18
(%)
Annual Default Rates 19802013
0
1
2
3
4
5
6
7
8
(%)
Average Annual High Yield Default Rate Over 10-Year Holding Periods
0 1 2 3 4 5 6 7 8
Real Estate
Healthcare and Pharmaceutical
Energy
Computers and Electronics
Chemicals
Industrial/Manufacturing
Consumer Products
Food, Beverage, and Tobacco
Metals and Mining
Retail
Building and Materials
Gaming, Lodging, and Restaurants
Insurance
Cable
Supermarkets and Drug Stores
Paper and Containers
Broadcasting and Media
Leisure and Entertainment
Utilities, Power, and Gas
Transportation
Textiles and Furniture
Banking and Finance
Automotive
Telecommunication
Average Annual Industry Default Rates 19802013
(%)

May 28, 2014
U.S. High Yield Market and Industry Default Rates
0
5
10
15
20
25
Total Market
(%)
0
5
10
15
20
Total Market
(%)
0
5
10
15
20
Total Market
(%)
0
5
10
15
20
25
Total Market
(%)
0
5
10
15
20
25
30
35
40
Cable
Total Market
Cable
(%)
0
5
10
15
20
Chemicals
Total Market
Chemicals
(%)
0
5
10
15
20
Total Market
(%)
0
5
10
15
20
Consumer Products
Total Market
Consumer Products
(%)
0
5
10
15
20
25
30
35
40
45
Energy
Total Market
Energy
(%)
0
5
10
15
20
25
30
35
40
45
Automotive
Total Market
Automotive
(%)
0
5
10
15
20
25
30
Banking and Finance
Total Market
Banking and Finance
(%)
0
5
10
15
20
25
30
35
Total Market
(%)

May 28, 2014
U.S. High Yield Market and Industry Default Rates (Continued)
0
5
10
15
20
25
30
Retail
Total Market
Retail
(%)
0
5
10
15
20
25
30
35
Total Market
(%)
0
5
10
15
20
25
30
35
40
45
Telecommunication
Total Market
Telecommunication
(%)
0
5
10
15
20
Total Market
(%)
0
5
10
15
20
25
30
35
40
Insurance
Total Market
Insurance
(%)
0
5
10
15
20
25
Total Market
(%)
0
5
10
15
20
25
30
Total Market
(%)
0
5
10
15
20
25
Transportation
Total Market
Transportation
(%)
0
5
10
15
20
25
30
35
Total Market
(%)
0
5
10
15
20
25
30
Metals and Mining
Total Market
Metals and Mining
(%)
0
5
10
15
20
25
30
Real Estate
Total Market
Real Estate
(%)
0
5
10
15
20
25
30
Total Market
(%)

May 28, 2014
U.S. High Yield Default Index: Top Five Defaulting Sectors
2011 $ % 2012 $ % 2013 $ %
Paper and Containers 3.23 10.3 Utilities, Power, and Gas 6.42 10.5 Leisure and Entertainment 1.54 10.0
Transportation 2.21 7.4 Paper and Containers 1.80 7.7 Broadcasting and Media 3.40 6.7
Utilities, Power, and Gas 3.57 5.9 Consumer Products 1.00 4.7 Building and Materials 2.55 4.7
Energy 3.22 2.6 Transportation 1.29 4.4 Automotive 0.68 3.1
Retail 0.65 2.0 Banking and Finance 4.04 3.3 Energy 4.99 2.8
Total Market 15.90 1.5 Total Market 20.53 1.9 Total Market 18.53 1.5

2008 $ % 2009 $ % 2010 $ %
Banking and Finance 29.91 29.2 Automotive 13.46 44.2
Broadcasting and Media 1.97 5.5
Leisure and Entertainment 1.47 16.9 Cable 12.63 36.4 Supermarkets and Drug Stores 0.26 3.1
Gaming, Lodging, and Restaurants 6.10 14.5 Broadcasting and Media 14.18 32.2
Retail 1.18 3.0
Broadcasting and Media 4.36 9.9 Paper and Containers 8.52 25.9 Building and Materials 0.76 2.2
Building and Materials 2.53 8.6 Banking and Finance 26.71 24.3
Healthcare and Pharmaceutical 1.06 1.8

2005 $ % 2006 $ %
2007 $ %
Transportation 5.17 24.2 Automotive 2.55 6.5
Leisure and Entertainment 0.53 5.4
Utilities, Power, and Gas 10.25 14.9 Paper and Containers 0.97 3.3
Automotive 0.73 2.1
Automotive 3.32 10.5 Insurance 0.16 2.8 Consumer Products 0.16 1.8
Industrial/Manufacturing 1.72 6.9 Transportation 0.39 2.7
Retail 0.33 1.6
Textiles and Furniture 0.30 3.6 Textiles and Furniture 0.13 1.7 Broadcasting and Media 0.63 1.6
Total Market 22.80 3.1 Total Market 5.79 0.8
Total Market 3.50 0.5

2002 $ % 2003 $ % 2004 $ %
Telecommunication 59.60 43.5 Insurance 0.89 15.6 Gaming, Lodging, and Restaurants 2.27 5.8
Insurance 2.96 35.2 Textiles and Furniture 1.35 14.2 Metals and Mining 1.00 5.5
Cable 16.47 34.4 Healthcare and Pharmaceutical 3.88 12.3 Textiles and Furniture 0.26 3.0
Metals and Mining 2.95 20.2 Telecommunication 8.91 11.0 Broadcasting and Media 0.80 2.9
Utilities, Power, and Gas 6.47 14.0 Utilities, Power, and Gas 5.94 9.8 Telecommunication 1.63 2.2

1999 $ % 2000 $ %
2001
$ %
Textiles and Furniture 1.03 11.4 Transportation 3.24 18.1 Utilities, Power, and Gas 15.00 34.2
Food, Beverage, and Tobacco 1.54 10.6 Building and Materials 2.44 16.2 Automotive 3.79 28.3
Healthcare and Pharmaceutical 2.46 9.9 Food, Beverage, and Tobacco 2.13 15.6 Telecommunication 28.24 23.9
Energy 3.64 9.7 Insurance 0.62 15.0 Banking and Finance 9.87 21.8
Transportation 1.31 8.3 Leisure and Entertainment 1.49 14.4 Leisure and Entertainment 1.55 17.8

1996 $ % 1997 $ % 1998 $ %
Textiles and Furniture 0.59 12.3 Gaming, Lodging, and Restaurants 1.42 9.5 Supermarkets and Drug Stores 2.79 25.7
Banking and Finance 0.70 9.9 Building and Materials 0.50 8.9 Insurance 0.30 8.4
Building and Materials 0.30 6.1 Textiles and Furniture 0.31 5.3 Retail 0.36 3.6
Broadcasting and Media 0.60 5.5 Food, Beverage, and Tobacco 0.40 5.1 Real Estate 0.20 3.3
Leisure and Entertainment 0.29 4.9 Real Estate 0.17 3.6 Metals and Mining 0.39 2.5

1993 $ % 1994 $ % 1995 $ %
Computers and Electronics 0.65 7.3 Supermarkets and Drug Stores 2.14 17.7
Insurance
0.70 21.3
Energy 0.60 3.4 Leisure and Entertainment 0.14 3.5
0.45 11.0
Telecommunication 0.08 2.6 Retail 0.16 2.6 Broadcasting and Media 0.49 5.8
Consumer Products 0.10 2.1 Transportation 0.30 1.5
Banking and Finance
0.34 5.0
Broadcasting and Media 0.15 1.5 Cable 0.16 1.1 Food, Beverage, and Tobacco 0.30 4.2
Total Market
3.65 1.7
Continued on next page.


May 28, 2014
U.S. High Yield Default Index: Top Five Defaulting Sectors (Continued)

1990 $ % 1991 $ % 1992 $ %
Supermarkets and Drug Stores 1.86 31.2 Telecommunication 0.92 37.3 Retail 1.39 11.5
Retail 2.94 28.6 Building and Materials 2.21 23.6
Chemicals 0.46 7.7
Textiles and Furniture 2.27 27.7 Retail 2.53 21.9
Leisure and Entertainment 0.16 6.2
Real Estate 0.88 25.7 Transportation 1.66 21.8
Metals and Mining 0.30 4.2
Transportation 1.45 15.8 Leisure and Entertainment 0.59 21.2
Industrial/Manufacturing 0.14 2.8
Total Market 4.10 1.8

1987 $ % 1988 $ % 1989 $ %
Energy 4.06 44.9 Supermarkets and Drug Stores 0.88 19.0 Banking and Finance 3.68 26.8
Leisure and Entertainment 0.29 11.8 Leisure and Entertainment 0.19 7.6 Building and Materials 1.27 14.8
Healthcare and Pharmaceutical 0.28 10.2 Banking and Finance 0.86 7.3 Gaming, Lodging, and Restaurants 1.11 10.3
Building and Materials 0.24 5.3 Healthcare and Pharmaceutical 0.15 4.2 Supermarkets and Drug Stores 0.27 5.1
Insurance 0.05 2.0 Services and Miscellaneous 0.35 2.5 Real Estate 0.16 4.5

1984 $ % 1985 $ % 1986 $ %
Energy 0.16 5.1 Energy 0.94 14.9 Metals and Mining 1.44 29.5
Industrial/Manufacturing 0.07 4.2 Insurance 0.07 6.5 Transportation 0.24 7.2
Broadcasting and Media 0.11 2.9 Gaming, Lodging, and Restaurants 0.08 5.0 Energy 0.50 5.5
Automotive 0.03 2.6 Building and Materials 0.10 4.8 Services and Miscellaneous 0.13 2.1
Services and Miscellaneous 0.01 0.4 Metals and Mining 0.17 4.1 Industrial/Manufacturing 0.07 1.8

1981 $ % 1982 $ % 1983 $ %
Telecommunication 0.02 31.3 Paper and Containers 0.01 26.8 Food, Beverage, and Tobacco 0.05 4.3
Real Estate 0.01 5.2 Computers and Electronics 0.07 12.0 Energy 0.06 2.4
Automotive 0.00 0.0 Transportation 0.13 11.7 Leisure and Entertainment 0.02 2.2
Banking and Finance 0.00 0.0 Telecommunication 0.03 11.6 Transportation 0.02 1.6
Broadcasting and Media 0.00 0.0 Building and Materials 0.10 10.3 Industrial/Manufacturing 0.01 1.1


May 28, 2014
Industry Default Rates 20002013
(%) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20002013
Average
Automotive 4.4 28.3 4.2 0.8 10.5 6.5 2.1 2.2 44.2 0.5 0.8 3.1 8.3
Banking and Finance 3.2 21.8 5.1 1.8 0.2 1.1 0.3 29.2 24.3 1.5 0.5 3.3 6.6
Broadcasting and Media 0.3 4.1 7.9 1.6 2.9 0.5 1.2 1.6 9.9 32.2 5.5 0.3 2.0 6.7 6.1
Building and Materials 16.2 4.3 3.7 0.6 0.6 8.6 8.9 2.2 1.3 4.7 3.5
Cable 1.2 34.4 1.2 36.4 6.6
Chemicals 2.0 10.5 4.7 4.7 1.5 2.4 18.0 1.0 2.9
Computers and Electronics 4.8 3.1 7.6 0.4 1.3 0.0 16.2 0.3 0.3 2.2
Consumer Products 9.6 12.5 3.2 1.8 1.3 1.8 16.8 4.7 3.1
Energy 1.1 0.3 2.4 2.8 0.6 1.9 2.4 1.1 2.6 1.2 2.8 1.6
Food, Beverage, and Tobacco 15.6 12.4 5.3 9.3 1.4 0.8 1.6 6.0 3.0 1.5 1.2 3.4
Gaming, Lodging, and Restaurants 2.4 3.2 2.1 1.7 5.8 0.4 14.5 22.4 1.3 1.7 2.8 1.1 4.5
Healthcare and Pharmaceutical 6.8 3.4 12.3 0.6 0.6 1.3 0.3 1.8 0.5 1.3 1.6
Industrial/Manufacturing 2.7 8.4 5.2 5.5 1.8 6.9 0.7 2.4 8.7 0.8 0.7 3.1
Insurance 15.0 35.2 15.6 2.8 4.2
Leisure and Entertainment 14.4 17.8 1.2 5.4 16.9 15.4 10.0 5.4
Metals and Mining 6.7 16.4 20.2 9.6 5.5 1.3 3.6 1.2 0.3 0.6 0.8 3.3
Paper and Containers 3.2 10.9 8.2 0.6 1.1 0.8 3.3 0.9 6.5 25.9 1.0 10.3 7.7 0.9 6.0
Real Estate 1.6 12.0 1.4
Retail 3.4 5.6 11.8 2.5 0.6 0.7 1.6 3.3 0.6 3.0 2.0 1.0 2.3
Services and Miscellaneous 5.1 2.8 2.2 0.5 1.9 0.1 0.6 1.4 5.1 0.3 0.8 0.5 1.4
Supermarkets and Drug Stores 13.8 3.6 2.3 1.1 3.3 0.3 4.5 3.1 2.0
Telecommunication 5.1 23.9 43.5 11.0 2.2 0.1 1.2 6.2 1.2 0.6 0.3 0.6 8.9
Textiles and Furniture 9.5 12.2 13.2 14.2 3.0 3.6 1.7 11.7 5.4
Transportation 18.1 5.7 13.2 8.8 1.4 24.2 2.7 8.5 1.7 7.4 4.4 7.1
Utilities, Power, and Gas 34.2 14.0 9.8 0.2 14.9 0.2 5.9 10.5 2.3 6.8
Total Market 5.1 12.9 16.4 5.0 1.5 3.1 0.8 0.5 6.8 13.7 1.3 1.5 1.9 1.5 4.7
Source: Fitch U.S. High Yield Default Index, Bloomberg.

Industry Recovery Rates 20002013
(%) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20002013
Average
Automotive 11.9 12.0 16.9 81.6 53.2 59.2 73.1 9.1 15.3 24.6 59.8 27.0
Banking and Finance 15.1 77.5 27.0 25.6 73.9 94.6 57.2 63.8 43.2 34.2 56.6 60.4
Broadcasting and Media 33.0 22.3 33.9 31.0 46.7 96.9 67.4 33.3 12.7 35.1 53.1 50.0 28.3
Building and Materials 27.6 33.3 20.9 35.6 26.0 25.6 51.2 53.8 37.1 23.7 33.5
Cable 53.4 41.1 30.8 43.1 42.0
Chemicals 12.8 29.4 19.0 41.2 52.4 9.6 25.0 47.4 28.6
Computers and Electronics 13.5 13.5 14.5 62.1 69.4 25.4 9.6 105.4 25.3
Consumer Products 16.4 24.7 13.3 43.6 39.6 15.3 30.6 74.0 35.5
Energy 53.9 8.0 49.0 59.2 71.7 28.8 43.0 61.3 76.2 26.5 25.1 45.0
Food, Beverage, and Tobacco 22.3 30.9 29.8 17.3 20.1 12.6 75.8 24.9 6.0 77.1 27.5
Gaming, Lodging, and Restaurants 28.5 15.8 76.7 79.2 86.9 101.4 28.5 19.2 69.0 49.3 81.6 24.2 37.0
Healthcare and Pharmaceutical 17.0 18.6 55.3 63.0 60.0 70.0 0.1 52.6 32.1 61.6 45.7
Industrial/Manufacturing 19.7 16.2 31.9 26.9 74.2 69.9 66.9 7.8 21.8 62.1 54.1 37.8
Insurance 27.0 9.4 10.5 44.6 13.2
Metals and Mining 13.1 11.6 35.9 33.5 44.0 61.3 51.8 49.5 46.0 29.5 30.3
Real Estate 9.3 61.1 55.0
Retail 22.4 7.4 48.2 44.7 24.6 37.1 1.1 44.6 58.5 18.6 37.9
Services and Miscellaneous 14.5 22.0 8.8 22.6 79.9 116.1 21.5 6.2 98.6 73.1 27.6 27.5
Supermarkets and Drug Stores 49.0 21.9 48.6 58.6 55.6 65.0 97.5 89.5 58.9
Telecommunication 32.8 11.5 13.5 34.0 53.8 9.0 10.9 20.3 100.6 78.1 70.1 68.8 17.7
Textiles and Furniture 15.0 11.3 27.6 23.5 33.9 42.2 68.6 15.6 22.4
Transportation 32.7 30.6 18.5 39.8 20.6 29.3 70.2 43.8 80.6 66.6 23.0 35.6
Utilities, Power, and Gas 60.1 30.0 72.9 71.1 17.6 64.9 53.1 112.7 61.7
Total Market 24.9 29.8 22.5 44.4 62.1 57.6 64.3 66.4 45.8 34.1 56.7 59.4 50.2 47.7 36.9


May 28, 2014
Industry Recovery Rates by Seniority 20002013

Par Wei ghted Average Medians
(%)
Seni or
Secured
Seni or
Unsecured
Seni or
Subordi nated Al l
Seni or
Secured
Seni or
Unsecured
Seni or
Subordi nated Al l
Automotive 58.9 26.9 20.0 27.0 59.8 38.1 12.2 24.6
Banking and Finance 48.9 64.1 18.8 60.4 27.5 29.6 15.0 27.9
Broadcasting and Media 38.7 23.9 24.6 28.3 43.8 40.9 22.3 34.6
Building and Materials 68.7 27.9 29.5 33.5 38.0 26.8 19.7 26.7
Cable 39.4 42.2 63.2 42.0 49.7 36.8 67.5 37.0
Chemicals 33.2 31.4 20.8 28.6 23.9 26.4 22.7 24.6
Computers and Electronics 28.7 26.3 21.4 25.3 23.4 14.6 17.0 17.3
Consumer Products 73.7 26.6 19.0 35.5 55.9 26.1 14.4 21.6
Energy 58.5 34.7 68.9 45.0 66.3 44.6 49.6 53.1
Food, Beverage, and Tobacco 70.8 27.5 13.6 27.5 69.4 18.5 10.0 19.3
Gaming, Lodging, and Restaurants 54.0 28.5 33.7 37.0 55.3 27.9 21.1 32.8
Healthcare and Pharmaceutical 57.6 57.5 26.2 45.7 44.3 59.1 26.6 36.6
Industrial/Manufacturing 61.5 39.3 22.4 37.8 58.1 21.6 24.6 24.8
Insurance 10.8 25.6 13.2 10.4 10.6 10.5
Metals and Mining 29.3 32.3 22.0 30.3 28.4 32.6 16.6 27.3
Paper and Containers 57.1 22.2 37.8 33.6 54.6 16.6 37.2 38.9
Real Estate 84.6 57.0 9.3 55.0 84.6 56.1 11.3 56.1
Retail 50.8 37.0 21.7 37.9 52.1 14.6 17.3 20.7
Services and Miscellaneous 45.7 29.5 18.4 27.5 66.5 22.0 19.4 21.0
Supermarkets and Drug Stores 93.1 47.9 53.8 58.9 94.3 52.1 29.6 54.4
Telecommunication 60.8 15.4 33.6 17.7 56.0 13.5 17.9 14.5
Textiles and Furniture 57.0 22.6 20.7 22.4 57.0 20.7 16.9 20.2
Transportation 68.1 26.6 27.7 35.6 69.6 27.4 36.6 30.0
Utilities, Power, and Gas 89.2 50.3 8.7 61.7 89.1 52.4 11.5 66.0
Al l 57.5 34.1 25.3 36.9 53.9 24.6 19.6 26.1

Industry Recovery Rates Observations Counts 20002013

Seni or Secured Count Seni or Unsecured Count Seni or Subordi nated Count Al l
Automotive 3 46 21 70
Banking and Finance 7 169 11 187
Broadcasting and Media 25 46 32 103
Building and Materials 5 48 18 71
Cable 5 62 3 70
Chemicals 7 25 16 48
Computers and Electronics 10 17 14 41
Consumer Products 5 12 9 26
Energy 20 31 4 55
Food, Beverage, and Tobacco 8 18 18 44
Gaming, Lodging, and Restaurants 30 40 17 87
Healthcare and Pharmaceutical 6 13 19 38
Industrial/Manufacturing 10 22 27 59
Insurance 0 14 3 17
Leisure and Entertainment 5 16 13 34
Metals and Mining 17 39 7 63
Paper and Containers 18 46 10 74
Real Estate 1 5 2 8
Retail 5 59 8 72
Services and Miscellaneous 5 25 14 44
Supermarkets and Drug Stores 2 7 7 16
Telecommunication 12 246 24 282
Textiles and Furniture 1 17 16 34
Transportation 20 84 13 117
Utilities, Power, and Gas 47 102 3 152
Al l 274 1,209 329 1,812


May 28, 2014

Recovery Rates by Seniority Bonds
(%)
Weighted Avg.
Recovery Rate
Straight Avg.
Recovery Rate
Median
Recovery Rate
a

Number of Issues
with Price Data
2000

Senior Secured 50.5 53.9 47.5 19
Senior Unsecured 18.4 22.5 13.3 74
Senior Subordinated 27.1 23.6 20.0 64
Total Defaulted Issues 24.9 28.0 20.0 157
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

a
Similar seniorities per issuer collapsed into one observation. Continued on next page.


May 28, 2014
Recovery Rates by Seniority Bonds (Continued)
(%)
Weighted Avg.
Recovery Rate
Straight Avg.
Recovery Rate
Median
Recovery Rate
a

Number of Issues
with Price Data
2011

2012

2013

20002013

Senior Secured 57.5 54.5 53.9 274
Senior Unsecured 34.1 32.9 24.6 1,209
Total Defaulted Issues 36.9 35.4 26.1 1,812
a
Similar seniorities per issuer collapsed into one observation.


May 28, 2014
Recovery Outcomes by Seniority and Economic Conditions
0
5
10
15
20
25
Distribution of Bond Recoveries:
20002013
(%)
Average 35.4%, Median 26.1%
0
5
10
15
20
25
30
Distribution of Senior Secured Bond
Recoveries: 20002013
(%)
0
5
10
15
20
25
30
Distribution of Senior Unsecured
Bond Recoveries: 20002013
(%)
0
10
20
30
40
50
60
70
20102013
(%)
0
5
10
15
20
25
30
20082009
(%)
0
5
10
15
20
25
30
20002002
(%)
0
5
10
15
20
25
30
20032007
(%)
0
10
20
30
40
Distribution of Subordinated Bond
Recoveries: 20002013
(%)

May 28, 2014
Defaults Versus Macroeconomic Trends
(5)
0
5
10
15
20
High Yield Default Rate Real GDP Growth
High Yield Default Rate Versus GDP Growth
Source: Fitch U.S. High Yield Default Index, Bureau of Economic Analysis.
(%)
(20)
(15)
(10)
(5)
0
5
10
15
20
25
30
Corporate Profit Growth
Source: Bureau of Economic Analysis.
(%)
(2)
(1)
0
1
2
3
4
5
6
Consumer Spending
(%)
(4)
(2)
0
2
4
6
Government Spending
.
(%)
(30)
(25)
(20)
(15)
(10)
(5)
0
5
10
15
20
Fixed Residential Investment
(%)
(20)
(15)
(10)
(5)
0
5
10
15
Fixed Nonresidential Investment
(%)
(5)
0
5
10
15
20
Consumer Credit
Source: Federal Reserve.
(%)
0
1
2
3
4
5
6
7
8
9
10
Unemployment
Source: Bureau of Labor Statistics.
(%)

May 28, 2014
Credit Availability Indicators
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
(bps)
BB B CCC
Source: Bank of America Merrill Lynch.
Corporate Spreads
0
10
20
30
40
50
60
70
80
90
(%)
U.S. High Yield Distress Ratio
Note: High yield distress is defined as spreads >1,000bps.
(40)
(20)
0
20
40
60
80
100
(%)
Source: Federal Reserve.
Federal Reserve Senior Loan Officer Survey Percentage of Banks Tightening
Standards on C&I Loans
(5,000)
(4,000)
(3,000)
(2,000)
(1,000)
0
1,000
2,000
3,000
4,000
($ Mil.)
High Yield Bond and Bank Loan Mutual Fund Flows
High Yield Bonds Bank Loans
Source: Lipper FMI.

May 28, 2014
Issuance Trends and Vintage Default Rates
265
329
480 501
612
689
294
239
376
566
664
1,135
409
372
121
173 182
153 142 144
52
156
282
220
307
302
111 92
0
200
400
600
800
1,000
1,200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 April
2013
April
2014
($ Bil.) Leveraged Loans High Yield Bonds
Source: Fitch Ratings, Thomson Reuters LPC, Bloomberg.
High Yield Bond and Loan Issuance
56.0 57.2
28.7
31.0 30.6 29.5
33.7
38.8
35.7
40.2
32.5
47.4
57.2
43.5
30.3 30.1
52.8
44.0
51.4
44.3
32.3
54.4
51.2
43.7 51.1 36.0
29.7
35.8
13.7 12.8
18.6
25.1 18.0 26.1 34.0
6.8
13.1 16.1 16.4 16.7 13.0
20.7
0
20
40
60
80
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 April
2013
April
2014
(%)
BB B CCCC or NR
NR Not rated.
Source: Fitch Ratings, Bloomberg.
Rating Mix of High Yield Bond New Issuance
22 22 22
14 14 17
33
40
41
49
40
10
17
23
20
24
29
28 28
41
16
12
10
11
12
17
17
17
26
21
24
26
20 16
50 50 37 70 73 73 56 48 42 33 43 64 61 53 54 56 55
0
20
40
60
80
100
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 April
2014
(%)
M&A/LBO Capex/General Corporate Refinancing
M&A Merger and acquisition.
Global High Yield Use of Proceeds by Volume (1998April 2014)
0
10
20
30
40
50
30.4% 48.3% 50.0% 25.4% 14.3% 6.7% 10.5% 13.7% 14.9% 22.6% 19.8% 33.3% 5.4% 5.5% 5.2% 3.3% 0.5%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
High Yield Default Rates by Vintage
Note: Cumulative vintage default rates are shown above the year.
(%)

May 28, 2014

U.S. High Yield Bond New Issuance by Industry
($ Bil.)

Industry 2013 % of Total
April
2013 % of Total
April
2014 % of Total
Automotive 11.6 3.8 4.0 3.6 3.6 3.9
Banking and Finance 25.4 8.4 7.0 6.3 11.8 12.8
Broadcasting and Media 9.6 3.2 2.6 2.3 5.6 6.1
Building and Materials 12.7 4.2 5.3 4.8 5.2 5.7
Cable 8.5 2.8 4.7 4.2 1.6 1.7
Chemicals 8.8 2.9 7.3 6.5 0.1 0.1
Computers and Electronics 17.3 5.7 2.9 2.6 4.1 4.4
Consumer Products 2.7 0.9 1.6 1.4 0.4 0.4
Energy 47.2 15.6 20.0 18.0 16.7 18.2
Food, Beverage, and Tobacco 13.8 4.6 8.4 7.6 0.9 1.0
Gaming, Lodging, and Restaurants 15.2 5.1 3.8 3.4 1.4 1.5
Healthcare and Pharmaceutical 18.6 6.2 2.1 1.9 13.3 14.4
Industrial/Manufacturing 6.8 2.3 4.2 3.8 3.6 4.0
Insurance 1.5 0.5 0.3 0.3 0.0 0.0
Leisure and Entertainment 3.4 1.1 1.4 1.3 2.1 2.3
Paper and Containers 3.6 1.2 2.3 2.1 0.3 0.3
Real Estate 8.8 2.9 3.8 3.4 2.8 3.0
Retail 11.8 3.9 3.2 2.9 2.5 2.8
Services and Miscellaneous 16.8 5.6 7.7 7.0 4.0 4.4
Supermarkets & Drug Stores 2.7 0.9 0.0 0.0 0.0 0.0
Textiles and Furniture 1.7 0.6 0.3 0.3 0.0 0.0
Transportation 7.1 2.4 2.7 2.4 3.3 3.6
Utilities, Power, and Gas 4.7 1.6 1.6 1.4 2.9 3.1
Total Issuance 301.8 100.0 110.9 100.0 92.0 100.0


May 28, 2014
High Yield Market Profile
Size and Rating Mix April 2014
Amount Outstanding
($ Bil.)
No. of
Issuers Rati ng
% Par
Value
Weighted
Average Coupon
Median
Coupon
1,291.8 1,388 BB 43.6 6.28 6.50

B 37.8 7.64 7.63

CCCC or NR 18.6 9.10 9.00

Al l 100.0 7.32 7.38
NR Not rated.

High Yield Industry Composition April 2014
Industry
Amount
Outstandi ng
($ Bi l.)
% of
Market
Volume
% of
Sector
Volume
Rated 'BB'
% of
Sector
Volume
Rated 'B'
% of Sector
Volume
Rated 'CCC'
or NR
Weighted
Average
Coupon
Median
Coupon
Automotive 26.6 2.1 32.4 57.1 10.6 7.12 7.75
Banking and Finance 146.9 11.4 78.0 18.6 3.4 6.48 6.25
Broadcasting and Media 57.4 4.4 32.3 37.1 30.6 7.77 7.63
Building and Materials 59.0 4.6 40.9 46.1 13.0 7.22 7.00
Cable 36.4 2.8 73.3 21.0 5.7 6.68 7.06
Chemicals 22.8 1.8 43.2 35.9 20.9 6.78 7.75
Computers and Electronics 58.5 4.5 18.4 39.1 42.4 8.09 7.69
Consumer Products 24.4 1.9 12.8 56.8 30.5 7.33 6.88
Energy 200.1 15.5 46.3 38.8 14.9 7.23 7.13
Food, Beverage, and Tobacco 35.6 2.8 39.8 45.9 14.3 7.24 7.50
Gaming, Lodging,
and Restaurants 56.0 4.3 16.6 44.4 39.1 8.18 8.31
Healthcare and Pharmaceutical 94.1 7.3 35.5 53.4 11.1 6.88 7.00
Industrial/Manufacturing 31.1 2.4 64.5 23.7 11.8 6.69 7.38
Insurance 6.1 0.5 81.8 7.8 10.4 7.25 7.48
Leisure and Entertainment 14.2 1.1 10.6 73.1 16.2 7.53 7.38
Metals and Mining 61.9 4.8 47.7 29.3 23.0 7.63 7.81
Paper and Containers 15.7 1.2 43.9 27.2 28.9 8.15 8.50
Real Estate 30.5 2.4 49.3 41.9 8.8 7.71 7.13
Retail 44.4 3.4 40.0 21.3 38.6 7.35 7.61
Services and Miscellaneous 59.8 4.6 25.2 34.9 39.9 7.96 8.00
Supermarkets and Drug Stores 8.7 0.7 7.5 47.2 45.3 7.94 7.88
Telecommunication 123.8 9.6 39.9 47.1 13.1 7.63 7.50
Textiles and Furniture 6.3 0.5 47.6 26.0 26.4 7.13 6.88
Transportation 32.9 2.5 40.1 39.9 20.0 7.48 7.44
Utilities, Power, and Gas 38.7 3.0 60.7 32.5 6.8 7.16 7.50
Total 1,291.8 100.0 43.6 37.8 18.6 7.32 7.38


May 28, 2014
Concentration of Bonds Rated B or Lower by Industry
(% of Sector Outstanding)

Industry 2009 2010 2011 2012 2013 April 2014
Automotive 74.3 19.9 11.9 15.6 17.7 16.1
Banking and Finance 58.6 17.2 15.6 14.4 10.9 10.6
Broadcasting and Media 66.5 47.1 41.1 38.1 30.8 37.5
Building and Materials 28.3 29.8 26.9 23.1 19.7 20.2
Cable 5.6 11.2 13.6 17.8 16.9 15.6
Chemicals 33.4 25.4 28.9 42.3 34.0 27.8
Computers and Electronics 71.3 66.7 55.1 50.8 53.1 53.2
Consumer Products 75.1 45.8 41.8 39.6 36.8 34.1
Energy 19.2 19.8 21.0 23.6 29.8 34.4
Food, Beverage, and Tobacco 36.0 30.1 40.9 30.2 25.2 24.8
Gaming, Lodging, and Restaurants 59.3 57.8 58.4 49.3 51.9 52.6
Healthcare and Pharmaceutical 49.0 39.7 35.1 32.2 28.8 36.2
Industrial/Manufacturing 29.6 27.3 26.9 17.3 14.7 17.1
Insurance 10.9 11.9 14.3 19.2 5.8 18.2
Leisure and Entertainment 50.3 53.4 55.3 46.5 44.3 41.2
Paper and Containers 37.7 31.9 36.1 33.6 41.3 45.5
Real Estate 47.5 28.0 19.7 19.6 17.4 18.5
Retail 39.6 30.9 40.2 39.9 53.0 51.2
Services and Miscellaneous 49.4 53.1 59.2 61.0 58.3 55.0
Supermarkets and Drug Stores 52.5 44.3 42.8 57.9 71.3 75.2
Textiles and Furniture 28.8 19.3 16.8 21.1 15.8 30.8
Transportation 33.9 31.6 30.4 37.1 35.0 38.4
Utilities, Power, and Gas 33.1 36.2 34.4 33.4 35.5 13.0
Total 41.6 32.1 31.2 32.2 31.0 31.2


May 28, 2014
High Yield Maturity Schedule by Rating: 20142017
($ Bil.)

Eight Months of 2014 2015 2016 2017
Rati ng ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng
BB 11.6 2.1 21.0 3.7 29.9 5.3 35.6 6.3
B 1.8 0.4 10.2 2.1 15.0 3.1 44.5 9.1
CCCC 1.0 0.5 5.8 2.6 9.1 4.1 18.0 8.1
NR 0.4 2.3 0.3 1.8 1.9 10.3 4.1 22.6
Total 14.9 1.2 37.3 2.9 55.9 4.3 102.2 7.9

High Yield Maturity Schedule by Industry: 20142017
($ Bil.)

Eight Months of
2014 2015 2016 2017
Industry ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng ($)
% of Total
Outstandi ng
Automotive 0.2 0.6 0.2 0.7 0.0 0.0 0.2 0.8
Banking and Finance 6.7 4.5 12.8 8.7 10.6 7.2 17.1 11.6
Broadcasting and Media 1.0 1.7 1.5 2.5 1.3 2.3 2.9 5.0
Building and Materials 0.5 0.8 3.1 5.3 4.6 7.8 5.4 9.2
Cable 1.0 2.7 0.8 2.1 1.6 4.3 2.8 7.7
Chemicals 0.0 0.0 0.4 1.7 1.1 4.7 0.2 1.1
Computers and Electronics 0.0 0.0 1.3 2.2 0.8 1.4 1.9 3.3
Consumer Products 0.0 0.0 0.1 0.3 1.2 4.8 0.7 2.9
Energy 1.7 0.8 2.9 1.4 3.2 1.6 14.6 7.3
Food, Beverage, and Tobacco 0.7 1.9 0.0 0.0 2.1 6.0 2.6 7.4
Gaming, Lodging, and Restaurants 0.3 0.5 1.7 3.0 2.5 4.5 4.1 7.3
Healthcare and Pharmaceutical 0.2 0.2 1.9 2.1 1.7 1.9 4.8 5.1
Industrial/Manufacturing 0.2 0.5 1.0 3.2 3.1 9.9 3.6 11.4
Insurance 0.0 0.0 0.1 2.2 0.0 0.0 0.0 0.0
Metals and Mining 0.0 0.0 2.1 3.3 1.6 2.5 7.3 11.8
Paper and Containers 0.0 0.0 0.0 0.2 0.9 5.8 1.7 10.6
Real Estate 1.0 3.4 2.8 9.0 2.1 7.0 2.8 9.1
Retail 0.2 0.5 0.2 0.5 1.0 2.3 3.6 8.2
Services and Miscellaneous 0.3 0.6 2.1 3.4 2.2 3.7 6.6 11.1
Supermarkets and Drug Stores 0.0 0.0 0.3 3.3 0.6 7.2 0.5 5.3
Telecommunication 0.4 0.3 0.7 0.6 6.1 4.9 14.0 11.3
Textiles and Furniture 0.3 3.9 0.1 2.0 0.2 3.0 0.2 3.2
Transportation 0.0 0.0 1.1 3.3 2.5 7.5 2.7 8.1
Utilities, Power, and Gas 0.5 1.2 0.4 0.9 3.4 8.8 1.6 4.0
Total 14.9 1.2 37.3 2.9 55.9 4.3 102.2 7.9

0
200
400
600
800
1,000
1,200
1,400
($ Bil.)
U.S. High Yield Market Growth 1990Apri l 2014

May 28, 2014

High Yield Industry Composition: 2000April 2014
(%) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
April
2014
Automotive 1.6 2.2 1.8 2.4 2.6 4.3 5.2 4.7 4.3 3.5 1.8 2.1 2.0 1.8 2.0
Banking and Finance 6.9 7.5 4.0 3.6 3.5 9.6 14.0 13.1 13.1 12.7 15.1 14.3 11.0 10.1 11.2
Broadcasting and Media 5.2 4.9 4.4 4.4 4.0 3.8 4.6 5.4 5.7 5.1 3.8 3.7 4.1 4.2 4.1
Building and Materials 2.7 2.7 2.5 2.7 2.9 3.0 3.0 2.9 3.8 4.0 3.6 3.7 4.1 4.5 4.5
Cable 7.0 6.5 7.2 4.1 4.7 4.2 4.1 3.9 3.7 4.0 2.6 2.4 2.7 2.9 2.8
Chemicals 2.7 3.2 3.3 4.0 4.3 3.6 3.0 2.4 1.9 1.8 2.2 2.2 1.7 1.8 2.0
Computers and Electronics 3.8 3.0 3.1 3.7 4.4 4.6 4.6 4.8 5.1 4.9 4.4 4.5 4.6 4.8 4.6
Consumer Products 1.7 1.4 1.2 1.3 1.2 1.2 1.3 1.1 0.9 0.8 1.1 1.6 1.9 1.9 1.8
Energy 5.9 4.9 6.7 10.5 10.9 9.5 9.3 9.2 9.1 9.2 10.5 11.8 13.7 14.8 15.0
Food, Beverage,
and Tobacco 2.5 1.9 1.9 2.7 2.8 2.4 2.4 2.4 2.1 2.0 2.1 2.0 2.2 2.6 2.8
Gaming, Lodging,
and Restaurants 4.4 4.3 4.9 5.7 5.7 4.7 4.9 5.2 5.4 5.3 4.7 4.5 4.6 4.5 4.3
Healthcare and
Pharmaceutical 4.1 3.6 3.5 4.7 4.5 4.4 4.6 5.2 5.5 5.5 6.1 6.3 6.9 7.1 7.1
Industrial/Manufacturing 3.2 3.7 3.5 3.7 3.6 3.4 2.8 2.8 2.5 2.3 2.2 2.1 2.1 2.2 2.3
Insurance 0.7 0.9 1.3 0.8 0.8 0.8 0.7 0.9 1.0 1.5 1.7 1.2 0.7 0.5 0.4
Leisure and Entertainment 1.9 1.4 1.2 1.6 1.7 1.3 1.3 1.3 1.1 1.0 1.1 1.2 1.3 1.3 1.1
Metals and Mining 3.2 2.6 2.2 2.3 2.7 2.9 2.8 2.8 3.0 3.2 3.1 3.0 3.9 4.2 4.4
Real Estate 1.3 1.1 1.2 1.4 1.4 1.2 1.4 2.1 2.7 2.9 2.6 3.0 3.0 2.4 2.2
Retail 2.6 2.8 3.3 2.8 2.5 2.5 2.5 2.7 3.1 3.7 4.0 3.0 2.9 3.4 3.5
Services and Miscellaneous 6.7 5.9 6.1 6.2 5.0 3.9 4.4 5.0 4.7 4.5 4.7 4.8 4.9 5.1 4.9
Supermarkets and
Drug Stores 1.4 1.1 1.1 1.3 1.4 1.3 1.5 1.8 1.5 1.3 1.2 1.0 1.0 0.8 0.7
Telecommunication 18.5 19.6 20.5 12.1 11.1 9.9 8.3 7.5 8.1 9.1 9.0 9.3 9.8 10.0 9.9
Textiles and Furniture 1.5 1.4 1.3 1.4 1.3 1.2 1.0 0.8 0.6 0.8 0.9 0.8 0.7 0.5 0.5
Transportation 3.3 3.6 3.7 3.3 3.0 2.9 1.9 1.8 1.4 1.7 2.4 2.9 2.6 2.4 2.5
Utilities, Power, and Gas 4.2 7.3 6.9 9.0 9.6 9.4 6.4 6.4 6.0 5.5 5.6 5.8 5.6 4.7 4.3
Total Market 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note: Based on average outstandings per period.


May 28, 2014

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