Fixed Income Research KDN PP 16084/10/2012 (030859)

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1 Fixed Income Research KDN PP 16084/10/2012 (030859) Vol.: FI/003/2018 J A N U A R Y Monthly Bond Market & Rating Snapshot FINANCIAL VARIABLE DEC17 JAN18 MOM CHNG OVERNIGHT POLICY RATE (%) bps 3YEAR BENCHMARK MGS (%) bps 10YEAR BENCHMARK MGS (%) bps 3YEAR IRS (%) bps 10YEAR IRS (%) bps RINGGIT 3YEAR AAA (%) bps RINGGIT 3YEAR AA (%) bps RINGGIT 3YEAR A (%) bps 2YEAR US TREASURY (%) bps 10YEAR US TREASURY (%) bps MYR/USD % US DOLLAR INDEX % BRENT CRUDE (USD/BARREL) % GOLD SPOT (USD/OUNCE) 1, , % KLCI Index 1, , % S&P 500 Index 2, , % Fixed Income Research led by: Global Markets 2 It was a jittery month for the global bond market. Since the beginning of January, yields on 10year government bonds in the US and core European countries have surged more than 25 basis points (bps). The continued rise in yields spurred market speculation that the bond market has already entered bear territory. Nor Zahidi Alias Chief Economist zahidi@marc.com.my Malaysian Government Bond Market 3 Local govvies in the secondary market came under pressure in the second half of January after having started the year on firmer footing on the back of the renewed strength in the ringgit. Yields on both Malaysian Government Securities (MGS) and Government Investment Issues (GII) were broadly higher at endjanuary amid cautious trading sentiment due to the heightened expectations of an Overnight Policy Rate (OPR) hike leading up to the actual hike itself. Ringgit 7 In January, the ringgit breached the RM4.000 level against the US dollar, settling at RM This was its strongest monthly close against the greenback since July The local note was primarily supported by Bank Negara Malaysia s (BNM) move to raise the OPR by 25 bps which was in line with market expectations. Malaysian Corporate Bond Market 8 MARC Rating Activities 11

2 Monthly Bond Market & Rating Snapshot Global Markets A quick review It was a jittery month for the global bond market as yields rose sharply. Minutes from the December policy meeting suggested that the ECB could soon revisit its forward guidance. The Fed sounded more upbeat in its inflation assessment. It was a jittery month for the global bond market. Since the beginning of January, yields on 10year government bonds in the US and core European countries have surged more than 25 bps. The continued rise in yields spurred market speculation that the bond market has already entered bear territory. The weakening trend in the government bonds highlighted growing optimism about global economic growth and inflation outlook as major central banks prepare to trim their monetary policy accommodation. Heavierthanusual investment grade bond issuance did not help. Minutes from the December policy meeting suggested that the European Central Bank (ECB) could soon revisit its forward guidance, which currently expects its interest rates to stay low for a prolonged period of time, as it would need to evolve gradually if the strength of the euro zone economy is sustained. This echoed recent hawkish commentaries from some ECB officials that hinted the end of the bank s asset purchases could be sooner than expected. The US Federal Reserve (Fed) sounded slightly more upbeat in its January postmeeting statement as it paved way for an interest rate hike in March Notably, the Fed reworded its inflation assessment, saying that it expected the US inflation to move up this year and to stabilise around the 2% target. In its December meeting, the Fed had predicted that the US inflation would continue to undershoot its 2% target this year. Exhibit 1: Summary of US rates US rates (%) Dec17 Federal Funds Rate (Upper Bound) bps 2year UST bps 5year UST bps 10year UST bps 30year UST bps Exhibit 3: Summary of UK rates UK rates (%) Dec17 Bank of England Official Bank Rate bp 2year Gilt bps 5year Gilt bps 10year Gilt bps 30year Gilt bps Exhibit 2: Summary of euro rates Euro rates (%) Dec17 European Central Bank Deposit Facility Rate bp 2year Bund bps 5year Bund bps 10year Bund bps 30year Bund bps Exhibit 4: Summary of Japan rates Japan rates (%) Dec17 Bank of Japan Shortterm Interest Rate bp 2year JGB bp 5year JGB bps 10year JGB bps 30year JGB bp 2

3 Feb16 Apr16 May16 Jun16 Aug16 Oct16 Dec16 Feb17 May17 Jun17 Aug17 Oct17 Dec17 Feb17 May17 Jun17 Aug17 Oct17 Dec17 Malaysian Government Bond Market Primary market review Monthly Bond Market & Rating Snapshot Total outstanding of MGS and GII papers was higher in January amid higher net issuance due to a lower volume of matured papers. Buying interest for local govvies in the primary market was buoyant in January amid the performance of the ringgit and firmer global crude oil prices. The combined outstanding of MGS and GII papers was RM641.2 billion in January, higher by RM8.5 billion. The increase was mainly attributed to a lower volume of matured MGS/GII papers during the period at RM2.0 billion that contributed to the higher net issuance of RM8.5 billion. However, the monthly gross issuance for both MGS/GII papers was lower at RM10.5 billion with most of the issuance coming from MGS. MGS comprised 61.9% of total MGS/GII gross issuance in January (December 2017: 78.1%). In January, the primary market for MGS/GII was vibrant with a total of RM20.3 billion worth of bids received for three issues, the highest total received for MGS/GII on a monthly basis since May 2017 at RM22.2 billion. The government raised a total of RM8.5 billion through public auctions while the remaining RM2.0 billion was raised through MGS issues via private placements. The three public offerings, namely the 20y reopening of MGS, 5y reopening of GII and 15y reopening of MGS raised RM2.0 billion, RM4.0 billion and RM2.5 billion respectively. Demand for these papers were buoyant, recording bidtocover (BTC) ratios at record highs for similar issues since Buying interest was primarily supported by the upbeat performance of the ringgit and firmer global crude oil prices. Exhibit 5: Summary of Malaysian government securities statistics (RM billion) Gross issuance Redemption Net issuance Total outstanding MGS GII Total MGS GII Total MGS GII Total MGS GII Total Dec YTD Source: BNM Bond Info Hub, Exhibit 6: Malaysian government securities auction results in January Issues Tenure Amount Average yield Issue date BTC (x) (years) (RM mil) (%) 20year reopening of MGS (Mat on 04/37) , year reopening of GII (Mat on 04/22) , year reopening of MGS (Mat on 04/33) , Source: BNM Fast, Exhibit 7: Total outstanding MGS/GII papers in January 2018 rose on lower volume of matured papers Exhibit 8: BTC ratios of MGS and GII papers for the past one year Issuance (LHS) Redemption (LHS) Outstanding (RHS) 4.0 MGS GII 1year average BTC ratio RMmillion 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Outstanding (RM million) 660, , , , , , , , Source: BNM Bond Info Hub, Source: BNM Fast, 3

4 Monthly Bond Market & Rating Snapshot Secondary market review Local govvies ended weaker in January amid the OPR hike and the global govvies selloff. The benchmark MGS yield curve bearishly steepened in January with the 10y/3y MGS spread widening by three bps to 61 bps. Local govvies in the secondary market came under pressure in the second half of January after having started the year on firmer footing on the back of the renewed strength in the ringgit. The monthly trading volume was higher at RM62.9 billion from RM28.3 billion in the previous month as trading interest resurged after the 2017 yearend holidays. Yields on both MGS and GII were broadly higher at endjanuary amid cautious trading sentiment due to the heightened expectations of an OPR hike leading up to the actual hike itself. In January, BNM raised the OPR by 25 bps to 3.25% in its latest Monetary Policy Committee (MPC) meeting, citing it as a preemptive move to prevent the buildup of risks arising from low interest rates. The local govvies secondary market performance was also in line with the global govvies market selloff, triggered by riskon sentiment exhibited by investors and as well as the global central banks commitment to monetary policy normalisation. As of endjanuary, the benchmark MGS yield curve had bearishly steepened, with both the 20y/3y and 10y/3y MGS spreads widening by four bps and three bps to 126 bps and 61 bps respectively. The selloff of longer tenured MGS in the final week of January was largely due to ECB comments on ending its asset purchases programme and the Fed s confidence on the growth of inflation in the US. Meanwhile, shortterm MGS yield surges were largely cushioned by heightened demand from foreign investors on the back of the firmer ringgit. Exhibit 9: Daily performance of three and 10year MGS yields throughout January 2018 Volume (RM million, RHS) 3Y MGS (LHS) 10Y MGS (LHS) *MGS yields being rebased to 100 on 29 December 2017 Upbeat November trade data release Global equity markets start to rally Global govvies selloff 5,000 4,500 4, , , Ringgit breaches the 4.0 level against the greenback November IPI exceeds forecast Rising concerns of a US government shutdown BNM raises the OPR by 25 bps to 3.25% 2,500 2,000 1,500 1, Source: Bloomberg, BPAM, Exhibit 10: MGS benchmark yields MGS yields (%) Dec17 Change 3year MGS bps 5year MGS bps 7year MGS bps 10year MGS bps 15year MGS bp Exhibit 11: OPR and Interest Rate Swap (IRS) rates Rates (%) Dec17 Change Overnight Policy Rate bp 1year IRS bp 3year IRS bps 5year IRS bps 10year IRS bps 4

5 Jan14 Mar14 May14 Jul14 Sep14 Nov14 Jan15 Mar15 May15 Jul15 Sep15 Nov15 Jan16 May16 May17 Monthly Bond Market & Rating Snapshot Exhibit 12: MGS yield curves Exhibit 13: MYR IRS curves mom (RHS) enddecember'17 (LHS) endjanuary'18 (LHS) % bps Maturities (Years) Y 5Y 7Y 10Y Exhibit 14: Malaysia s 5Y Credit Default Swap (CDS) curve Exhibit 15: 10Y/3Y MGS spread Malaysia 5year CDS (bps) Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Oct16 Oct Y/3Y MGS Spread (bps) Jan13 Mar13 May13 Jul13 Sep13 Nov13 Jan14 Mar14 May14 Jul14 Sep14 Nov14 Jan15 Mar15 May15 Jul15 Sep15 Nov15 Jan16 May16 May17 Exhibit 16: Top five local govvies trades for January 2018 Security Traded amount (RM mil) Issue tenure (Years) Last traded yield GII MURABAHAH 3/ % , % GII MURABAHAH 1/ % , % MGS 4/ % , % MGS 2/ % , % MGS 5/ % , % Exhibit 17: Summary of MGS trading volume (RM million) based on maturity profile < 3M 3M 6M 6M 1Y 1Y 2Y 2Y 3Y 3Y 5Y 5Y 7Y 7Y 10Y > 10Y Dec17 2,397 3,050 1, ,367 2,716 4,137 1,808 3,438 2,925 6,720 1,481 6,449 4,224 4,453 6,961 1, , , ,

6 Jan16 Feb16 Apr16 May16 Jun16 Aug16 Oct16 Dec16 Feb17 May17 Jun17 Aug17 Oct17 Dec17 Monthly Bond Market & Rating Snapshot Foreign holdings Foreign funds continued to pour into local govvies for the third consecutive month in January. N Foreign holdings of local govvies continued to trend higher for the third consecutive month in January. Foreign holdings climbed further by RM4.9 billion to RM191.2 billion, equivalent to 28.3% of total outstanding local govvies. The surge in foreign holdings was mainly buoyed by the firmer ringgit, higher crude oil prices, continued expansion in BNM s international reserves, confidence on the government s fiscal consolidation efforts and improved economic outlook of Malaysia. The higher net issuance value of MGS/GII also partially contributed to the growth in foreign holdings of local govvies amid the lower value of matured MGS/GII papers. MGS and GII reported total foreign holdings of RM168.6 billion (December 2017: RM164.4 billion) and RM18.9 billion (December 2017: RM18.5 billion) respectively. In January, total foreign ownership of both MGS and GII rose to 45.7% and 7.0% respectively of total outstanding. Meanwhile, the combined total of foreign holdings of both the shortterm Malaysian Treasury Bills (MTB) and Malaysian Treasury Bills (MITB) was also higher, amounting to RM3.7 billion (December 2017: RM3.3 billion), representing 52.2% (December 2017: 74.0%) of total outstanding. In January, MTB recorded a monthly increase of RM0.4 billion to RM2.7 billion (December 2017: RM2.4 billion), whereas foreign holdings on MITB remained around the RM0.9 billion level. Exhibit 18: Summary of foreign holdings in local govvies Foreign holdings (RM mil) Composition (%) Foreign flows (RM mil) Dec17 Dec17 Dec17 MGS 164, , ,125 4,173 GII 18,496 18, MGS+GII 182, , ,689 4,616 Treasury bills 3,331 3, Total 186, , ,976 4,936 Source: BNM, Exhibit 19: Foreign holdings of ringgit bonds as percentage of total outstanding Exhibit 20: Monthly foreign flows and total foreign holdings of local bonds 63.5% 53.5% 43.5% 33.5% Total foreign holdings (RM million, RHS) MGS GII Corporate bonds Total 250, , % 150,000 RM million 15,000 10,000 5,000 (5,000) MGS GII Others Total foreign holdings (%) 21.0% 20.0% 19.0% 18.0% 23.5% 13.5% 3.5% 100, % 50, % 3.7% (10,000) (15,000) (20,000) (25,000) (30,000) 17.0% 16.0% 15.0% 14.0% Jan16 Feb16 Apr16 May16 Jun16 Aug16 Oct16 Dec16 Feb17 May17 Jun17 Aug17 Oct17 Dec17 Source: BNM, BPAM, Source: BNM, BPAM, 6

7 Jan14 Mar14 May14 Jul14 Sep14 Nov14 Jan15 Mar15 May15 Jul15 Sep15 Nov15 Jan16 May16 May17 Monthly Bond Market & Rating Snapshot Ringgit Against the US dollar The ringgit continued to rise against the US dollar amid the OPR hike, firmer crude oil prices and foreign inflows. In January, the ringgit continued its upwards trend against the US dollar. The ringgit had breached the RM4.000 level against the US dollar, appreciating by 1,480 pips to RM from RM in December, its strongest monthly close against the greenback since July The local note was primarily supported by BNM s move to raise the OPR by 25 bps which was in line with market expectations. The ringgit was also supported by BNM s optimistic view on the economy for 2018, firmer crude oil prices amid output cuts imposed by the Organisation of Petroleum Exporting Countries (OPEC) and political unrest in Iran, and heightened demand for Malaysian assets on the back of positive economic data releases. Furthermore, the ringgit also received a boost from expectations of higher Foreign Direct Investments (FDI) from China s Belt and Road initiative in the future. Against other major currencies The local note continued to be traded mixed against other major currencies at endjanuary. At endjanuary, the ringgit continued to be traded mixed against a basket of other major currencies. The local note was firmer against the Singapore dollar and the Japanese yen at RM and RM per JPY100 from RM and RM per JPY100 respectively. However, it fell against the pound sterling and the euro to RM and RM from RM and RM respectively. Exhibit 21: Asian currencies against USD (% mom) Exhibit 22: Major currencies against MYR (% mom) Philippine peso US dollar 4.1 South Korean won 0.3 Hong Kong dollar 3.8 Hong Kong dollar 0.1 South Korean won 3.7 Indian rupee 0.3 Indonesian rupiah Taiwanese dollar Indonesian rupiah Taiwanese dollar Singapore dollar Japanese yen USD Strengthened USD w eakened 3.2 Offshore Chinese renminbi Japanese yen Australian dollar Singapore dollar MYR strengthened MYR weakened Offshore Chinese renminbi 3.4 Thai baht 3.9 Malaysian ringgit Thai baht 0.1 Euro 0.13 Swiss franc 0.84 Pound sterling Exhibit 23: Daily performance of the ringgit versus FBM KLCI, BRENT crude and 10y MGS Exhibit 24: Monthly performance of the ringgit versus foreign holdings of shortterm local bonds and MGS RM915.1 mil foreign flow into Bursa RM772.2 mil foreign flow into Bursa RM702.2 mil foreign flow into Bursa RM872.6 mil foreign flow into Bursa Foreign Holdings of ST Papers (%, LHS) MYR/USD (Reverse scale, RHS) Foreign Holdings of MGS (%, LHS) *KLCI, Brent & 10y MGS rebased to 100 at 29th December KLCI Brent 10y MGS USD/MYR (Reverse order, RHS) Source: Bloomberg, MIDF, Source: Bloomberg, BNM, 7

8 Malaysian Corporate Bond Market Monthly Bond Market & Rating Snapshot Local corporate bond issuances were lower in January amid a decline across all corporate bond segments except the rated corporate bond segment. The corporate bond primary market saw lower issuing activity in January after recording double digit monthly growth since September last year. Total gross issuance fell by RM4.2 billion or 30.6% m om to RM9.6 billion. All corporate bond segments registered a decline during the period except for the rated corporate bonds segment. Gross issuances in the rated corporate bonds segment was led by Edra Energy Sdn Bhd s 33 tranches of MediumTerm Notes (IMTN) valued at RM5.1 billion, for the purpose of funding the construction of its 2,242MW gas power plant and Danga Capital Bhd s singletranche IMTN worth RM1.5 billion, Khazanah Nasional Bhd s specialpurpose vehicle (SPV) to facilitate issuance of securities. Most of the issuances came from the infrastructure and utilities sector and were AArated. On an annual basis, the total gross issuance of corporate bonds grew by RM8.0 billion or 502.1% yoy. Exhibit 25: Summary of corporate bond issuance in January 2018 (RM billion) Year Unrated corporate bonds Unrated governmentguaranteed Total unrated Rated corporate bonds Cagamas Total rated Total corporate bonds Dec Exhibit 26: Historical trend of bond issuance by category (RM billion) Year Unrated corporate bonds Unrated governmentguaranteed Total unrated Note: Numbers may not necessarily add up to total due to rounding. Rated corporate bonds Cagamas Total rated Total corporate bonds YTD Exhibit 27: Top corporate bond issuers in January 2018 (issue size of RM1 billion and above) Edra Energy Sdn Bhd Issuer Industry Category Principle Infrastructure & utilities No. of issues Amount (RM bil) Tenure (Years) Coupon (%) AA rated Danga Capital Berhad Transportation AAA rated

9 Monthly Bond Market & Rating Snapshot Exhibit 28: The infrastructure and utilities sector contributed the bulk of corporate bond issuances in January 2018 Exhibit 29: Outstanding size of Cagamas and corporate bonds as of January 2018 (RM billion) utilities RM billion 6.0 Asset class Conventional Total Diversified holdings 1.5 Financial services Property & real estate Trading & services Construction & engineering Industrial products Transportation Mining & petroleum Assetbacked securities Public finance Plantation & agriculture Unrated 5% GG 5% Cagamas 5% AA 68% AAA 17% Cagamas Corporate Bonds Corporate Corporate guaranteed Financial ABS Exhibit 30: Corporate bonds outstanding: Conventional & Exhibit 31: Corporate bonds outstanding: Distribution by rating band 67% AAA 26% AA 41% Conventional 33% Cagamas 7% Shortterm 3% Not rated 17% BBB & below 2% A 4% Exhibit 32: AAA corporate benchmark yields AAA (%) Dec17 3year bps 5year bp 7year bp 10year bp Exhibit 33: AA/AA2 corporate benchmark yields AA/AA2 (%) Dec17 3year bp 5year bp 7year bps 10year bp Exhibit 34: A/A2 corporate benchmark yields A/A2 (%) Dec17 3year bps 5year bps 7year bps 10year bps Exhibit 35: AAA, AA/A2, A/A2 blended credit spreads AAA, AA/A2 & A/A2 (bps) Dec17 3year bps 5year bps 7year bps 10year bps 9

10 Monthly Bond Market & Rating Snapshot Exhibit 36: AAA corporate bonds yield spread (bps) Exhibit 37: AA/AA2 corporate bonds yield spread (bps) 110 3Y 5Y 7Y 10Y 150 3Y 5Y 7Y 10Y Jan16 Feb16 Apr16 May16 Jun16 Aug16 Oct16 Dec16 Feb17 May17 Jun17 Aug17 Oct17 Dec17 60 Jan16 Feb16 Apr16 May16 Jun16 Aug16 Oct16 Dec16 Feb17 May17 Jun17 Aug17 Oct17 Dec17 Exhibit 38: A/A2 corporate bonds yield spread (bps) Exhibit 39: 5Y blended credit spread (bps) Y 5Y 7Y 10Y year average 200 Jan16 Feb16 Apr16 May Jun16 Aug16 Oct16 Dec16 Feb17 May Jun17 Aug17 Oct17 Dec Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Oct16 Oct17 Exhibit 40: Secondary market volume (RM billion) Asset class Dec17 MGS/GII Cagamas FI corporate NonFI corporate Exhibit 41: NonFI corporate traded by rating band (RM billion) Rating band Dec17 AAA AA A BBB and below Shortterm

11 Monthly Bond Market & Rating Snapshot MARC Rating Activities MARC assigned three initial ratings, and reaffirmed 15 issue ratings and one counterparty credit rating in January. In January, MARC assigned three initial ratings. MARC assigned initial ratings of AA IS to both Sinar Kamiri Sdn Bhd s (SKSB) RM0.2 billion Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah and SAJ Capital Sdn Bhd s RM0.7 billion Sukuk Murahabah. MARC also assigned an initial rating of AA to Segi Astana Sdn Bhd s ASEAN Green MediumTerm Notes (MTN) facility of up to RM0.4 billion. In the same month, MARC reaffirmed a total of 15 issue ratings from 10 issuers with their rating outlook remaining stable. MARC also reaffirmed the counterparty credit rating for Credit Guarantee and Investment Facility (CGIF) with its outlook remaining stable as well. Meanwhile, there were no rating migration activities and no new issues were placed under MARCWatch in January. Exhibit 42: List of rating actions in January 2018 Principle Category Main sector Issuer Date announced Rating action Rating outlook Longterm rating Shortterm rating Before After Before After Issue size (RM mil) Credit enhancement Conventional Corporate Debt Trading/Services Premier Merchandise Sdn Bhd 29 AFFIRMED STA AAA AAA 300 bg Conventional Corporate Debt Trading/Services Premier Merchandise Sdn Bhd 29 AFFIRMED STA AAA AAA 300 fg Project Finance Project Finance Corporate Debt Source: *bg bank guarantee; fg financial guarantee Jimah East Power Sdn Bhd 29 AFFIRMED STA AA AA 10,000 Sinar Kamiri Sdn Bhd 26 INITIAL STA AA AA 245 Petronas Dagangan Bhd 25 AFFIRMED STA AAA AAA MARC1 MARC Corporate Debt Trading/Services MMC Corporation Bhd 25 AFFIRMED STA AA AA 1,500 Conventional Corporate Debt Property Berjaya Land Bhd 22 AFFIRMED STA AAA AAA 500 fg Conventional Corporate Debt Property Berjaya Land Bhd 22 AFFIRMED STA AAA AAA 150 bg Unspecified Corporate Debt Project Finance Project Finance Counterparty Credit Rating Finance Northport (Malaysia) Bhd 19 AFFIRMED STA AA AA MARC1 MARC1 1,500 SAJ Capital Sdn Bhd 19 INITIAL STA AA AA 650 TNB Western Energy Berhad 18 AFFIRMED STA AAA AAA 4,000 Credit Guarantee & Investment Facility 11 AFFIRMED STA AAA AAA MARC1 MARC1 0 Corporate Debt Plantation TSH Sukuk Ijarah Sdn Bhd 10 AFFIRMED STA AA AA 300 Corporate Debt Plantation Corporate Debt Plantation Corporate Debt Plantation Project Finance Conventional Project Finance TSH Sukuk Musyarakah Sdn Bhd TSH Sukuk Murabahah Sdn Bhd TSH Sukuk Murabahah Sdn Bhd Konsortium Lebuhraya Utara Timur (KL) Sdn Bhd Konsortium Lebuhraya Utara Timur (KL) Sdn Bhd 10 AFFIRMED STA AAA AAA 100 fg 10 AFFIRMED STA MARC1 MARC AFFIRMED STA AA AA AFFIRMED STA AA AA 2, AFFIRMED STA A A 180 Conventional Project Finance Property Segi Astana Sdn Bhd 04 INITIAL STA AA AA 415 Exhibit 43: MARCWatch placements, by issue count Exhibit 44: MARC rating migrations, by issue count 2.5 MARCWatch NEG MARCWatch DEV 40 Upgrades Downgrades Defaults DEC12 DEC13 DEC14 DEC15 DEC16 DEC17 JAN YTD Source: Source: 11

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