Global investment-grade bonds GTM –UK | 65 Investment-grade spreads US IG leverage measures Basis points, option-adjusted spread over local government bond yield x, leverage (LHS); x, interest coverage ratio (RHS) 3.8 16 700 3.3 Leverage* 14 US IG energy 2.8 12 600 UK IG 2.3 US IG 1.8 10 500 Euro IG 1.3 8 Interest coverage** 0.8 6 400 '00 '02 '04 '06 '08 '10 '12 '14 '16 e US cumulative net investment-grade bond issuance m 300 USD billions o 800 2016 issuance c n 2015 issuance i 600 d 200 e Range of 2010 - 2014 x Fi 400 100 200 0 0 '00 '02 '04 '06 '08 '10 '12 '14 '16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: (Left) BofA Merrill Lynch, Bloomberg, J.P. Morgan Asset Management. (Top right and bottom right) J.P. Morgan Securities, J.P. Morgan Asset Management. *Leverage is debt to earnings before interest, tax, depreciation and amortisation (EBITDA). **Interest coverage ratio is EBITDA over interest expense. Guide to the Markets - UK. Data as of 31 December 2016. 65