1. Municipal Bonds - Municipal bonds are haircut per Exhibit 1 based on both their time to maturity and scheduled maturity at date of issue. The bond details can be found on the Bonds; Ratings Information tab in the spreadsheet. 2. Corporate Bonds - Corporate bonds are haircut based on both their time to maturity and whether they are rated as investment grade (defined by S\&;P and Fitch as BBB- and above and by Moodys as Baa3 and above) 1 by at least two of the nationally recognized statistical rating organizations. If the bonds qualify as investment grade, use Exhibit 2 to determine the haircut of the bonds. If they do not qualify as investment grade, then they are considered non-marketable and follow the haircut rules as stated in Exhibit 3 . It is important to note that the haircut is calculated using the absolute value of the market value of the relevant bond. What is the total haircut in USD on the positions in the accompanying spreadsheet as of 2017-12-31? *** In Exhibit 2, the text references (one of the four highest ratings categories). The four highest ratings categories for S\&P and Fitch are AAA,AA,A, and BBB. The four highest ratings categories for Moodys are Aaat,Aa,A, and Baa. The plus/minus signs and numbers next to the ratings are used for increased specificity within the ratings categories. Expert Q\&A 5:23 4 Messages Expert Q\&A Done 5:23C 4 Messages Expert Q\&A Done tie teas act wertas ar K5 1. Municipal Bonds - Municipal bonds are haircut per Exhibit 1 based on both their time to maturity and scheduled maturity at date of issue. The bond details can be found on the Bonds; Ratings Information tab in the spreadsheet. 2. Corporate Bonds - Corporate bonds are haircut based on both their time to maturity and whether they are rated as investment grade (defined by S\&;P and Fitch as BBB- and above and by Moodys as Baa3 and above) 1 by at least two of the nationally recognized statistical rating organizations. If the bonds qualify as investment grade, use Exhibit 2 to determine the haircut of the bonds. If they do not qualify as investment grade, then they are considered non-marketable and follow the haircut rules as stated in Exhibit 3 . It is important to note that the haircut is calculated using the absolute value of the market value of the relevant bond. What is the total haircut in USD on the positions in the accompanying spreadsheet as of 2017-12-31? *** In Exhibit 2, the text references (one of the four highest ratings categories). The four highest ratings categories for S\&P and Fitch are AAA,AA,A, and BBB. The four highest ratings categories for Moodys are Aaat,Aa,A, and Baa. The plus/minus signs and numbers next to the ratings are used for increased specificity within the ratings categories. Expert Q\&A 5:23 4 Messages Expert Q\&A Done 5:23C 4 Messages Expert Q\&A Done tie teas act wertas ar K5
