ael Cembalest Chief Investment Officer “What a diffrence a day makes’, Dinah Washington, 1959, Mercury Records “Banks Deleveraging and Real Estate”, Morgan Stanley Research, Francesca Tondi, March 15, 2012 The ECRI (Economic Cycle Research Institute) claims papal infallibility on its historical recession predictions. EC

al and interest payments IMF budget repayments” ™ Sovereign interest payments = Principal - AID bonds m@ Principal - UKRAIN bonds Source: Bloomberg, Morgan Stanley Research; See Ukraine Economics and Strategy: Kyiv Trip Takeaways, April 7, 2017. Politics EU has verified its support by (1) lifting its visa requirements

el Cembalest Chief Investment Officer "What a dirrenee a day makes", Dinah Washington, 1959, Mercury Records "Banks Deleveraging and Real Estate", Morgan Stanley Research, Francesca Tondi, March 15, 2012 The ECRi (Economic Cycle Research institute) claims papal infallibility on its historical recession predictions. EC

ge Spread inclusive of applicable Libor Floors. As of December 31II 2017. (3) Median Cumulative Par created of outstanding 2015 vintage BSL CLOS per Morgan Stanley Research. As of December 31g 2017. (4) Median Weighted Average Spread of outstanding 2015 vintage BSL CLOS per Morgan Stanley Research. As of December 311, 2

ting Collateralized Debt Obligations Backed by Project Finance and Infrastructure Assets; August 12. 2015. (3) As of January 17Th 2018. (4) Source. Morgan Stanley Research. As of December 311, 2017. (5) Calculated as (i)Equity contributed plus the sum of (a) the market value of the Principal Collateral plus (b) Princip

Markit as of January 17, 2018. Loans in the Target Portfolio that are not listed by Markit are assumed to have a Liquidity Score of 5. (2) Source: Morgan Stanley Research. Represents the average Liquidity Score of all BSL CLOs currently outstanding as of December 31, 2017. (3) Source: Morgan Stanley Research. Represen

000 0 5,000 10,000 15.000 20.000 25.000 30.000 (1) Source: Median Weighted Average Spread and Median of outstanding 2015 vintage BSL CLOS per Morgan Stanley Research. As of October 25th 2017. RIN is being compared to a 2015 BSL CLO because RIN's first payment period occurred at the end of 01'15. (2) RIN WAS and

ting Collateralized Debt Obligations Backed by Project Finance and Infrastructure Assets; August 12. 2015. (3) As of January 17Th 2018. (4) Source. Morgan Stanley Research. As of December 311, 2017. (5) Calculated as (i)Equity contributed plus the sum of (a) the market value of the Principal Collateral plus (b) Princip

future returns. In short, we have an investment cycle where some asset- class price movements are out of synch with economic growth. Sources: Morgan Stanley Research, Bloomberg Finance L P Data as of November 2015. Past performance is not indicative of future returns. Readers should refer to the explanatory notes

ting Collateralized Debt Obligations Backed by Project Finance and Infrastructure Assets; August 12. 2015. (3) As of January 17Th 2018. (4) Source. Morgan Stanley Research. As of December 311, 2017. (5) Calculated as (i)Equity contributed plus the sum of (a) the market value of the Principal Collateral plus (b) Princip

000 0 5,000 10,000 15.000 20.000 25.000 30.000 (1) Source: Median Weighted Average Spread and Median of outstanding 2015 vintage BSL CLOS per Morgan Stanley Research. As of October 25th 2017. RIN is being compared to a 2015 BSL CLO because RIN's first payment period occurred at the end of 01'15. (2) RIN WAS and

onal Accounting: A Meaningful Way to Assess Generational Policy,” published on 12/94 in The Journal of Economic Perspectives. KP Source: Greg Jonas, Morgan Stanley Research. i USA Inc. | High Level Thoughts 31 ...and About Government Budgeting e Federal government budgeting follows arcane practices that are very differ

6 10/06 12/06 Note: Illustrative AAA-rated subprime RMBS spread represented as Mezzanine CDO spread vs. 7-year swap rate. KP Source: Betsy Graseck, Morgan Stanley Research. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 186 HOUSE_OVERSIGHT_020934 Investors Struggle with Today’s Low ~4% Risk Free Rate ¢ Pensi