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Corporate bonds • 5 August 2010

Sell BTA Bank bonds

Morning comments Fresenius raised expectations
Wednesday was another positive day for corpo- Fresenius has released a very strong financial
rate bonds. iTraxx Xover narrowed by 5 bp to statement for the first half of 2010. The results
455, and the sales volume picked up on surpris- definitely exceeded market expectations, and
ingly good accounts from Lloyds and Societe Fresenius raised expectations for 2010 signifi-
Generate on Tuesday. Also the ISM business cantly.
trend indicator for the service sector and ADP’s
report on US employment added to the happier We maintain our BUY recommendation for EUR
sentiment. We expect the sentiment to con- 8.75% 2015 and USD 9.00% 2015.
tinue on Thursday with focus on the monetary-
policy meetings at the European Central Bank The full recommendation will be available in
and the Bank of England. an English version shortly.
Sell BTA Bank bonds
The price of BTA Bank bonds has risen over the
summer, and it is now above our fair value
estimate. We therefore recommend inves-
tors to sell their BTA Bank bonds.

Investors should sell their bonds for settle-

ment not later than 13 August 2010 to be
Publisher: certain that the bonds are not locked.
Jyske Markets
Vestergade 8-16
The full recommendation will be available in an
DK - 8600 Silkeborg
English version shortly.
Analyst assistant:
Klaus D. Mortensen iTraxx Xover VDAX
+45 89 89 76 88 750
34 32
Translation : 550 28
p.b .l
Translation Services 450
oV 26

350 22
Read more corporate 20
bond research reports at 250 18 06-02-10 14-03-10 19-04-10 25-05-10 30-06-10 05-08-10 16
S12 S13 05-04-2010 05-05-2010 05-06-2010 05-07-2010 05-08-2010

JPM EUR High Yield spread Moody’s European default rate

2500 18%
2000 14%
1000 4%
500 0%

05-08-2000 05-08-2002 05-08-2004 05-08-2006 05-08-2008 05-08-2010

Default Rate Moody's Baseline Moody's Pessimistic Moody's Optimistic

Please see the last page
Corporate bonds • 5 August 2010

Disclaimer & Disclosure

Jyske Bank is supervised by the Danish Financial Supervisory Authority.

The research report is based on information which Jyske Bank finds reliable, but Jyske Bank does not assume any responsibility for the
correctness of the material nor any liability for transactions made on the basis of the information or the estimates of the report. The
estimates and recommendations of the research report may be changed without notice. The report is for the personal use of Jyske
Bank's customers and may not be copied.

This is a recommendation and not an in-depth investment report.

Conflicts of interest
Jyske Bank has prepared procedures to prevent conflicts of interest, although analysts may have different tasks. These procedures have
been incorporated in the business procedures covering the corporate-bond research activities of Jyske Markets, a business unit of Jyske

Jyske Bank's corporate-bond analysts may not hold positions in the instruments for which they independently prepare research
reports. Jyske Bank may, however, hold positions, have interests in or business relations with the companies that are analysed. The
research report has not been presented to the company prior to its release. The analysts receive no payment from persons interested
in individual research reports.

Read more about Jyske bank's policy on conflicts of interest at

Jyske Bank’s corporate bond recommendations – current breakdown

Breakdown of recommendations, corporate bonds (number)







Sourc e: Jyske Bank

Financial models
Jyske Bank uses mainly Credit Edge from Moody’s.

Investment in this corporate bond is associated with risk. Movements in the credit market, the sector and/or the news flows, etc.
regarding the company may affect the price of the bond. See the front page of the research report for our view of the risk associated
with the corporate bond. The risk factors stated and/or calculations of sensitivities in the research report are not to be considered all-
encompassing. If the corporate bond is denominated in a currency other than the investor’s base currency, the investor accepts an FX

Update of the research report

The planned update of the report will be prepared immediately upon the release of the company’s financial statements.

See the front page for the initial date of publication of the report.
All prices stated are the latest trading prices at the time of the release of the research report, unless otherwise stated.