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RBC Capital Markets’ strength in the municipal bond market A leader in U.S. municipal finance Headquartered in New York, RBC Capital Markets (RBC CM) is a leader in U.S. Municipal Finance. Drawing on the strength of RBC’s high credit rating (Aa3/AA-), we serve hundreds of municipal issuers annually. Employing 350 banking, sales, trading, underwriting and research professionals in 26 cities, we have one of the largest U.S. municipal finance practices in the country. Over the past 78 years, the Municipal Finance Group has expanded in size, breadth and expertise. We have provided municipal financing assistance to thousands of clients, and have underwritten tens of thousands of bond issues.
Investment banking RBC CM’s banking offices throughout the country provide local clients with public finance professionals who have first-hand knowledge of the communities they serve. The bankers are able to sustain a level of active involvement with the issuer by attending local meetings and establishing a direct relationship free from geographic barriers. The growth of RBC CM’s public finance practice has been built upon maintaining significant banking offices in select cities across the country. These core market offices are staffed with public finance bankers who have significant municipal finance expertise coupled with considerable knowledge of their specific market’s economy, demographics and public finance laws.
Trading and underwriting RBC CM’s regional underwriting and trading expertise coupled with a national focus provides us with a unique
advantage in gathering information on bonds issued in the areas we serve. Through our five regional trading desks and numerous underwriting groups we have in depth knowledge and access to local markets. As a result, we maintain extensive inventory positions and actively participate in both the primary and secondary markets, offering our clients a wide range of investment opportunities. BondDesk, a live and executable trading platform, gives our traders and financial advisors access to more than 150 commingled retail inventories, from primary and regional dealers across the country. This allows us to provide our customers with competitive offerings and the largest selection of fixed income products in the marketplace. As a result, we are able to provide our customers with more opportunities; achieving better pricing for their trades.
Market distribution Through RBC Wealth Management, we have an expansive network, with retail branch offices located throughout the nation serving individual investors. Our underwriting and trading capabilities are broadly dispersed, far-reaching and client focused, allowing us to deliver a wide range of municipal products.
Research and Strategies group RBC provides our clients with quality research. The municipal credit strategists in our Fixed Income Strategies Group provide in-depth access to credit information, market conditions, and product information for investors. We publish timely commentaries on the economy, fixed income markets and
investment strategies. Additionally, the strategies group professionals provide portfolio review services for our financial advisors and their clients.
Municipal underwriting RBC CM is the most active underwriter of municipal bonds in terms of total number of senior managed issues, underwriting hundreds of issues annually. We maintain two fundamental advantages: • Strong and enduring client relationships • Significant capital to underwrite unsold balances in the primary market and to create and maintain an active secondary market for client issues In 2015, RBC Capital Markets’ Public Finance Department ranked as the #5 Lead Manager on Negotiated Issues with 669 issues for an 8.1% market share. Total par amount on these issues was $23,432,600,000. Contact Us: RBC Plaza 60 South Sixth Street Minneapolis, MN 55402-4422 (612) 371-7730 Please see the following pages for RBC CM’s Lead Manager, US Municipal Composite and Negotiate Composite Amount tables, followed by highlighted issues of interest from U.S. regions.
Page 2 of 5 RBC Capital Markets’ strength in the municipal bond market, continued
Lead Manager League Table Negotiated: True Economics to Book Runner
01/01/2015 - 12/31/2015 Manager
Par Amount
Rank (US$ mil)
Mkt. Share
# of Issues
Citi
32,917.2
1
11.3
337
Bank of America Merrill Lynch
32,702.1
2
11.3
305
J P Morgan Securities LLC
32,115.8
3
11.1
275
Morgan Stanley
23,483.0
4
8.1
258
RBC Capital Markets
23,432.6
5
8.1
669
Stifel Nicolaus & Co Inc
16,718.3
6
5.8
811
Wells Fargo & Co
16,673.4
7
5.7
191
Barclays
14,280.9
8
4.9
123
Raymond James
13,549.4
9
4.7
479
Piper Jaffray & Co
11,966.7
10
4.1
497
377,583.6
–
100.0
Industry Total
12,077
Lead and Co-Manager League Table Negotiated: True Economics to Book Runner
01/01/2015 - 12/31/2015 Manager Bank of America Merrill Lynch
Par Amount (US$ mil)
Rank
Market Share (%)
# of Issues
111,312.7
1
38.3
695
J P Morgan Securities LLC
98,235.1
2
33.8
597
Citi
97,693.4
3
33.7
657
Morgan Stanley
93,314.4
4
32.1
614
Wells Fargo & Co
91,291.4
5
31.4
589
RBC Capital Markets
84,856.3
6
29.2
1062
Raymond James
75,361.2
7
26.0
941
Siebert Brandford Shank & Co
63,778.3
8
22.0
297
Loop Capital Markets
62,780.6
9
21.6
324
Barclays
60,089.8
10
20.7
303
Top 10
838,713.2
–
56.4
6,079
Industry Total
290,335.1
–
100.0
7,638
Page 3 of 5 RBC Capital Markets’ strength in the municipal bond market, continued
Healthcare Lead Manager League Table Negotiated: True Economics to Book Runner
01/01/2015 - 12/31/2015 Manager
Par Amount (US$ mil)
J P Morgan Securities LLC
4,212.2
Rank
Market Share (%)
# of Issues
1
18.9
45
Bank of America Merrill Lynch
4,074.1
2
18.3
46
Morgan Stanley
2,354.6
3
10.6
24
Goldman Sachs & Co
2,170.0
4
9.8
16
Citi
1,976.3
5
8.9
15
Piper Jaffray & Co
1,432.6
6
6.4
16
RBC Capital Markets
1,231.2
7
5.5
12
Barclays
1,108.3
8
5.0
8
Wells Fargo & Co
998.6
9
4.5
12
Jefferies LLC
491.5
10
2.2
6
94,993.3
–
100.0
Industry Total
5,838
Single Family Housing Lead Manager League Table Negotiated: True Economics to Book Runner
01/01/2015 - 12/31/2015 Manager
Par Amount (US$ mil)
Rank
RBC Capital Markets
1,876.5
1
J P Morgan Securities LLC
Market Share (%) 24.4
# of Issues 41
1,115.7
2
14.5
24
Bank of America Merrill Lynch
979.5
3
12.7
18
Citi
923.6
4
12.0
21
Morgan Stanley
846.2
5
11.0
20
Wells Fargo & Co
487.6
6
6.3
16
Raymond James
410.0
7
5.3
13
Academy Securities Inc
178.3
8*
2.3
2
Barclays
178.3
8*
2.3
5
Stifel Nicolaus & Co Inc
491.5
10
2.3
7
94,993.3
–
100.0
Industry Total
5,838
Page 4 of 5 RBC Capital Markets’ strength in the municipal bond market, continued
Highlighted issues in the East Coast Region 01/01/2015 - 12/31/2015 Issuer
Issue Description
Par Amount ($ mils)
Lead Manager
State
NYS Dorm Authority
Sales Tax Revenue Bonds
1,523.100
Morgan Stanley RBC Capital Markets Siebert Brandford Shank & Co
NY
NYS Utility Debt Securitization Auth
Restructuring Bonds
1,002.115
Bank of America Merrill Lynch Citi Barclays RBC Capital Markets
NY
New York City-New York
General Obligation Bonds
799.660
RBC Capital Markets
NY
Connecticut
Special Tax Oblig & Ref Bonds
839.770
RBC Capital Markets
CT
New Jersey Trans Trust Fund Au
Transportation Program Bonds
626.800
RBC Capital Markets
NJ
Highlighted issues in the Mid-Atlantic Region 01/01/2015 - 12/31/2015 Issuer
Issue Description
Par Amount ($ mils)
Lead Manager
Michigan Finance Authority
Hospital Revenue Refunding Bonds
398.435
RBC Capital Markets Morgan Stanley
State MI
Metro Washington Airports Auth
Airport System Rev Ref Bonds 227.335
Morgan Stanley RBC Capital Markets
DC
Ohio Water Development Authority
Wtr Poll Control Loan Fund Bonds
240.000
RBC Capital Markets
OH
Cuyahoga Co (Cleveland) MSD
GO Unltd Tax School Imp Bonds
120.516
RBC Capital Markets
OH
Michigan Finance Authority
Hospital Revenue & Ref Bonds
181.210
RBC Capital Markets
MI
Highlighted issues in the South Region 01/01/2015 - 12/31/2015 Issuer
Issue Description
Par Amount ($ mils)
Lead Manager
State
Univ of Oklahoma Bd of Regents
General Revenue Bonds
213.705
RBC Capital Markets
OK
Colorado St Univ Sys Bd of Gov
System Enterprise Revenue Bonds
134.730
RBC Capital Markets
CO
Park Creek Metropolitan Dt
Sr Ltd Prop Tax Supported Rev Ref
231.290
RBC Capital Markets
CO
Harris Co (Cypress-Fairbanks) ISD
Unltd Tax Scool Bldg & Ref Bonds
209.045
RBC Capital Markets
TX
San Antonio City – Texas
Elec & Gas Sys Jr Ln Rev Bonds
100.00
RBC Capital Markets
TX
Page 5 of 5 RBC Capital Markets’ strength in the municipal bond market, continued
Highlighted issues in the Upper Midwest Region 01/01/2015 - 12/31/2015 Issuer
Issue Description
Par Amount ($ mils)
Lead Manager
State
Utah State Board of Regents
Student Loan Backed Notes
415.500
RBC Capital Markets
UT
Illinois State Toll Highway Auth
Toll Highway Senior Rev Ref Bonds
333.060
RBC Capital Markets Siebert Brandford Shank & Co
IL
Indiana Finance Authority
Hospital Revenue Refunding Bonds
287.395
RBC Capital Markets J P Morgan Securities LLC
IN
Wisconsin Hsg & Econ Dev Auth
Home Ownership Revenue Bonds
137.855
RBC Capital Markets
WI
Minnesota Housing Fin Agency
Residential Housing Finance Bonds
96.930
RBC Capital Markets
MN
Par Amount
Lead Manager
Highlighted issues in the West Coast Region 01/01/2015 - 12/31/2015 Issuer
Issue Description
California Dept of Wtr Resources
Power Supply Revenue Bonds 382.923
J P Morgan Securities LLC RBC Capital Markets
State CA
California St Public Works Board
Lease Revenue Refunding Bonds
431.885
RBC Capital Markets Siebert Brandford Shank & Co
CA
Pierce Co (Tacoma) SD #10
Unlimited Tax GO & Ref Bonds
368.275
RBC Capital Markets
WA
Los Angeles (Long Beach) USD
General Obligation Bonds
89.998
RBC Capital Markets
CA
So California Metro Water Dt
Water Revenue Bonds
208.255
RBC Capital Markets US Bancorp
CA
RBC Capital Markets is a trade name of Royal Bank of Canada and its affiliates, including RBC Capital Markets, LLC and the fixed income businesses of RBC Wealth Management in the U.S. (members NYSE/SIPC), RBC Dominion Securities Inc. in Canada (member CIPF), and Royal Bank of Canada (Europe) Ltd. The fixed income investment banking, sales, trading and underwriting activities of Royal Bank of Canada throughout the world are carried out under the name RBC Capital Markets. The municipal securities underwriting and financial advisory services of RBC Capital Markets in the United States are provided by RBC Wealth Management, a fullservice broker-dealer (including retail brokerage). Balance sheet products, such as interest rate swaps and letters of credit, are provided by Royal Bank of Canada. [RBC Centura Bank is a bank in the southeastern United States that is a wholly-owned subsidiary of Royal Bank of Canada.] The terms “RBC,” “we” or “our” in this proposal refer to one or more of these entities as indicated by the context. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. © 2016 All rights reserved.
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