Citi Global Wealth PUTTiNG YoUr CASH To worK iN A HiGHer rATe eNviroNMeNT | | 47 Investments Active alternative investment managers can provide anchor capital for a new collateral. And private credit managers can work with companies on private debt issue and initiate exchanges of public debt directly with issuers where financings where terms and collateral packages can be negotiated to provide borrowers receive maturity relief in return for higher yield and/or additional favorable yields as well as covenants and seek downside protection. FiGUre 2. HiGH-YieLD AND LoAN iSSUANCe FeLL HArD iN 2022  Expected remaining  Total issuance  YTD IF ISSUANCE THE REST OF THE YEAR FOLLOWS POST-CRISIS IF ISSUANCE THE REST OF THE YEAR FOLLOWS POST-CRISIS 500 AVERAGE, GROSS ISSUANCE MAY REACH $112BN. 700 AVERAGE, GROSS ISSUANCE MAY REACH $244BN. (MAX/MIN PACE +$137BN/ +$93BN) (MAX/MIN PACE +$274BN/+$215BN) 450 600 400 350 500 $ bn300 $ bn400 250 200 404 300 358 488 150 274 267 200 405 263 366 360 100 227 225 198 333 186 158 235 237 100 205 207 207 190 50 88 0 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 0 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: Citi Research, S&P/LCD, as of 30 Sep 2022. All forecasts are expressions of opinion, are subject to change without notice and are not intended to be a guarantee of future events. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary. Charts shows issuance of high-yield bonds (left chart) and loans (right chart) in 2022 compared to years going back to 2012.