Confidential BondEdge Solutions, an Interactive Data company

GIOA 2012 Annual ConferenceBondEdge Solutions Review

Presented by Louis Gehring, BondEdge Solutions

March 21, 2012

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BondEdge Solutions is a niche provider of fixed income analytics to institutional investors

Leading provider of fixed income portfolio analytics to institutional investors

Over 30 years expertise

Client base includes more than 400 investment managers, banks, insurance companies, state and local government agencies, brokerage firms, depository institutions, and pension funds

BondEdge® can be implemented through an easy to support SaaS OnDemand model

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Security Price YTW OAD OAC Price YTW OAD OAC Price YTW OAD OACFHLB 1.25% FEB 2017 100.13 0.78 1.88 -1.51 98.93 1.48 2.91 -1.57 -1.20 0.70 1.03 -0.06U.S. TSY 1.50% DEC 2013 102.45 0.22 1.89 0.02 102.02 0.37 1.77 0.02 -0.43 0.15 -0.12 0.00

Actual Evolution of Two Securities with Nearly Equal Option-Adjusted Durationas of January 31, 2012

As of January 31, 2012 As of March 16, 2012 Change

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Why Analytics Matter?

Notation:

OAC: Option Adjusted Convexity

YTW: Yield to WorstOAD: Option-Adjusted Duration

Similar initial OAD Price changes weredramatically different

Explanation: Negative convexity due to the presence of a call option

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BondEdge provides analytics and data that are mission critical to the investment process

Comprehensive fixed income security coverage, including over 2.8 million bonds, including a structured finance library of over 16,000 CMO, ABS, and CMBS deals

Robust option adjusted fixed income risk measures, including effective and spread duration, convexity, option adjusted spread, and key rate durations

Single and multi-factor term structure models, option model, prepayment models for fixed and adjustable rate RMBS collateral

Credit analytics, including probability of default estimates for corporate bonds

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Portfolio Reporting

Portfolio Holdings Analysis and Allocation Exposure Reports and Graphs

Market and Book Value Reporting

Portfolio vs. Benchmark Comparisons

Portfolio Alerts for significant events such as corporate actions (calls/pre-refunding) and credit rating upgrades, downgrades, watch lists

Pre and Post Trade Compliance Reporting

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Forward Looking and Proposed Trade Analysis

Total return and book value scenario analysis, given parallel and non-parallel interest rate shocks, credit spread and mortgage spread shifts

Cash flow projections for current and simulated interest rate environment

Portfolio “What-If” Analysis to review market and book value effects of trades being considered by the user, with links to leading trade order systems

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Portfolio versus Benchmark Comparisons

Overall 350 indices from leading fixed income benchmarks, including Barclays Capital®, Bank of America Merrill Lynch®, Citigroup®, S&P®

Standard and custom reports to view relative allocations versus benchmark for ratings, sector, maturity, and duration exposures

Contribution to Duration Exposure Analysis, based upon effective duration, spread duration, key rate durations

Scenario Analysis and Tracking Error reports

Fixed Income Performance Attribution for portfolios and benchmarks that provide term structure, credit spread, and issue level analysis

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BondEdge Database Coverage

US Treasury Bills, Bonds, Notes and Strips

US Federal Agency Debt

High Grade Corporate Bonds

High Yield Corporate Bonds

TBA Mortgages/Generic Mortgages

Agency Government Sponsor Enterprises (GSEs) Pass-through MBS

CMOs

CMBS

ABS

Inflation Indexed Securities

Money Market Instruments

Municipal Securities

Emerging Market Debt

Non$ Debt (Sovereign, Supranational, Corporate)

Futures

Fixed Rate Preferred Stock

ETF Library

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BondEdge SolutionsAdditional Information

Please visit our table in the Exhibition Hall

Interactive Data Website: www.interactivedata.com

Contact Tony Armedilla, Senior Sales Coordinator, BondEdge Solutions: (310) 664-2524 or tony.armedilla@interactivedata.com

For BondEdge clients, please contact your BondEdge client service representative, (310) 479-9715

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Limitations

This presentation is provided for informational purposes only and contains proprietary information of BondEdge Solutions and/or its affiliates, and is not to be published, reproduced, copied, or disclosed without the express written consent of BondEdge Solutions. The information contained in this presentation is subject to change without notice and does not constitute any form of warranty, representation, or undertaking. Nothing herein should in any way be deemed to alter the legal rights and obligations contained in agreements between BondEdge Solutions and / or its affiliates and their clients relating to any of the products or services described herein.

BondEdge Solutions makes no warranties whatsoever, either express or implied, as to merchantability, fitness for a particular purpose, or any other matter. Without limiting the foregoing, BondEdge Solutions makes no representation or warranty that any data or information (including, but not limited to, evaluations) supplied to or by it are complete or free from errors, omissions, or defects. Nothing contained herein should be construed as legal, accounting or investment advice or be relied upon as such.

Interactive DataSM is either registered service mark or service mark of Interactive Data Corporation in the United States or other countries. BondEdge® is either a registered trademark or a trademark of Interactive Data Corporation in the United States or other countries. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners.

© 2012 Interactive Data Corporation

3/21/2012