General Sales & Trading Disclosure/Disclaimer

Daiwa Capital Markets Europe Limited (“DCME”) prepares and disseminates market information and the current bids and offers for those investments and securities for which it is a market maker to its clients (“General Sales and Trading Communications”). These are prepared by sales, trading, capital markets or other non-research functions, including but not limited to runs, axes, pricing indications, and macro commentary which are for factual information purposes only. General Sales and Trading Communications do not constitute independent investment research and are not prepared under conditions designed to promote the independence of investment research.  These are not intended to assess the individual merits of a particular investment or strategy, are not investment recommendations to buy or sell any financial instrument or to participate in any trading strategy and should not be construed as such. The recipient shall be solely responsible for conducting their own independent investigation and analysis of the information contained in the General Sales and Trading Communications.

General Sales and Trading Communication are not intended to be comprehensive advice or constitute a representation as to the suitability for the recipient’s purposes or objective. Certain information contained in our General Sales and Trading Communications may have been obtained from third party sources and while such information is believed by DCME to be correct and reliable it has not been independently verified by DCME and does not guarantee expressly or impliedly the quality, timeliness, accuracy or completeness of such information. DCME shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on such third party information. Furthermore the information may not be current due to, among other things, changes in the financial markets or economic environment; DCME does not, and has no obligations to update any such information contained in its General Sales and Trading Communications. DCME, its affiliates and staff disclaim any liability or responsibility for the quality, timeliness, accuracy or completeness of any such information. DCME, its affiliates and staff do not accept any liability arising in relation to any use of or reliance on the information contained in the General Sales and Trading Communications.  Any prices or quotations contained herein are indicative only, do not represent firm quotes as to either price or size and should not be used for valuation purposes.

General Sales and Trading Communications are not intended to forecast or predict future events.  Past performance is not a guarantee or indication of future results. DCME does not assign ratings of Buy, Hold or Sell to its General Sales and Trading Communications.

DCME may make markets, provide liquidity and effect transactions in the financial instruments mentioned or described in its General Sales and Trading Communications or enter into a trading strategy in those instruments and may also perform or seek to perform investment banking, brokerage, or other services for any entities which may be contained within the subject or narrative of any such communications.

The General Sales and Trading Communications are proprietary to DCME and may not be quoted, published, altered in any way, circulated, transmitted to, copied or distributed to any other party or otherwise referred to or relied upon, without the prior written consent of DCME.

In addition, sales and trading personnel also produce and disseminate credit strategy pieces, sales notes, trading and market commentary (“Sales and Trading Commentaries”) which can be regarded as investment recommendations under the UK Market Abuse Regulation (“MAR”). The sales and trading staff who produce investment recommendations have received compensation based upon various factors, including individual performance competitive factors, firm revenues, their sales including remuneration from client enquiries arising from the distribution of any trader axes and overall global markets revenues.

Sales and Trading Commentaries do not contain a personal recommendation and do not take into account the individual financial circumstances, needs or objectives of the recipients. Recipients should therefore seek their own independent financial, legal, tax or other advice before deciding to invest in any of the instruments mentioned in such documents. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Financial instruments denominated in a foreign currency are subject to exchange rate fluctuations, which may have an adverse effect on the price or value of an investment in such products.

The information provided does not originate from our independent credit research team which undertake investment research and provide recommendations on an independent basis and which is located outside DCME’s sales and trading organisational structure.

DCME may make markets, provide liquidity and effect transactions in the financial instruments mentioned in its investment recommendations or pursue a trading strategy including any investments mentioned or described in our Sales and Trading Commentaries and may also perform or seek to perform investment banking, brokerage, or other services for any entities which may be contained within the subject or narrative of any such communication including entering into transaction with them. 

DCME may make markets, provide liquidity and effect transactions in the financial instruments mentioned or described in its Sales and Trading Commentaries or enter into a trading strategy in those instruments and may also perform or seek to perform investment banking, brokerage, or other services for any entities which may be contained within the subject or narrative of any such communications. Certain information contained in our Sales and Trading Commentaries may have been obtained from third party sources and while DCME deems/consider such information to be reliable, it has not been independently verified by DCME and does not guarantee expressly or impliedly the quality, timeliness, accuracy or completeness of such information.  DCME shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on such third party information. Furthermore the information may not be current due to, among other things, changes in the financial markets or economic environment. DCME does not, and has no obligations to update any such information contained in its Sales and Trading Commentaries. DCME, its affiliates and staff disclaim any liability or responsibility for the quality, timeliness, accuracy or completeness of any such information.  DCME, its affiliates and staff do not accept any liability arising in relation to any use of or reliance on the information contained in the General Sales and Trading Communications. Any prices or quotations contained herein are indicative only, do not represent firm quotes as to either price or size and should not be used for valuation purposes.

The recommendations incorporate estimated values (relative value) and the author’s fundamental view on the security.  The fundamental credit view of an issuer may be based on criteria such as the company’s underlying credit trends, overall creditworthiness and our opinion on whether the issuer will be able to service its debt obligations when they become due and payable.  We may review, among other things, the company’s cash flow capacity and trends and standard credit ratios, such as gross and net leverage, interest coverage and liquidity ratios.  We may also review profitability, capitalization and asset quality, among other variables, when assessing financials.  We can also consider management strategy, financial policy and the overall competitive landscape in relevant industries insofar as these may impact credit quality.  We may also assess market technical aspects such as the likely future supply of bonds or fund flows into the broader asset class.  The Sales and Trading Commentaries remain valid only at the point of publication, as they are not updated in real time to take account of changes in the financial markets or new news about the issuer or instruments. [Any expressions of opinion or recommendations expressed in the Sales and Trading Commentaries are subject to change without notice.]

DCME will make available its investment recommendations since the latest change or up to for the preceding 12 months upon request. These provided for information purposes only and are not intended to be comprehensive advice or constitute a representation as to the suitability for the recipient’s purposes or objective. The recipients shall be solely responsible for conducting their own independent investigation and analysis of the information made available.

The Sales and Trading Commentaries are proprietary to DCME and may not be quoted, published, altered in any way, circulated, transmitted to, copied or distributed to any other party or otherwise referred to or relied upon without the prior written consent of DCME. 

Summarised distribution information 

This material is not directed at, or intended for distribution into or use by, any person or entity domiciled or resident in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable laws or regulations of such jurisdictions. No liability is accepted by DCME its affiliates and staff for any damages, losses or costs (whether direct, indirect or consequential) that may arise from any use of or reliance on this material.

For US Investors: This report is intended solely for persons who qualify as “Major U.S. Institutional Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934 and who deal with Daiwa Capital Markets Europe Limited. This communication does not carry all of the independence and disclosure standards of a retail debt research report. The views expressed in this report may differ from those of the Research Department or others within the firm. This report may not be independent of the proprietary trading interests of Daiwa Capital Markets America Inc., the trading desk may trade as principal in the securities that are the subject of this communication and such trading interests may be contrary to the recommendation in this communication. Recipients of this report in the United States wishing to effect a transaction in any security mentioned herein should do so by contacting Daiwa Capital Markets America Inc. (a broker-dealer registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)). The delivery of this report to any person in the United States shall not be deemed a recommendation by Daiwa Capital Markets America Inc. or its affiliates to effect any transactions in the securities discussed herein or an endorsement of any opinion expressed herein. This material shall not be re-distributed in the United States without the consent of Daiwa Capital Markets America Inc.

United Kingdom: Daiwa Capital Markets Europe Limited is authorised and regulated by the Financial Conduct Authority. Daiwa Capital Markets Europe Limited is incorporated in the United Kingdom (and registered in England & Wales with Companies House (Company number 01487359)), with its registered office at 5 King William Street, London, EC4N 7AX, United Kingdom. The Legal Entity Identifier for Daiwa Capital Markets Europe Limited is: MIM2K09LFYD4IB163W58. 

© 2017, Daiwa Capital Markets Europe. All rights reserved.