AFME is pleased to circulate itsEquity Primary Markets and Trading Report for the third quarter of 2023 (Q3 2023). The report provides an update on the performance of the equity market in Europe in activities such as primary issuance, Mergers and Acquisitions (M&A), equity liquidity structure, and market valuations. Key findings: Equity underwriting on European exchanges for the first three quarters of 2023 rose 15% year-to-date (YtD) on the back of stronger secondary equity offerings (+23% YtD) and issuance of convertible securities (+167% YtD). The increase, however, is relative to a year of low equity capital raising as the issued amount in 2022 was a record low for Europe. The quarterly average raised in 2023 continues significantly below historic averages (€25bn in 2023 vs €45bn 2000-23 historic). IPOs continued subdued with €6.2bn issued in the first three quarters of 2023. This represents a decline of 54% against the same period of 2022 and the lowest year-to-date (YtD) since 2012. Mergers and Acquisitions (M&A) during the first three quarters of the year declined when measured as announced value (-37% YtD) and when measured as completed value (-48% YtD). Average daily equity trading on European main markets and MTFs stood at €74.6bn in the first three quarters of 2023, a 12% decrease compared to the same period of 2022. Q3’23 saw the second-lowest quarterly turnover ratio in our records (since records began in 2017). Double Volume Cap (DVC) update: The number of instruments suspended under the DVC has continued to decline in the course of the year, to 241 suspended instruments (183 at EU Level and 58 at TV level) as of November 2023. The number of suspended instruments is the lowest since April 2021 and the 4th lowest since the inception of the DVC mechanism. European equity trading mix: According to BigXYT data, on-venue trading represented 73% of the total addressable liquidity in Q3’23. Volume traded off-venues, on systematic internalisers and pure OTC, represent the remaining 27% of the volume of the total addressable liquidity.

AFME is pleased to circulate its European ESG Finance quarterly data report for the third quarter of 2023. The aim of this report is to provide detailed data and analysis on the rapidly growing Sustainable Finance market in Europe. This Report contains up to date trends for the European Sustainable Finance market as at 30 September 2023, as well as a high-level regulatory and supervisory snapshot. Key highlights: European ESG bond and loan issuance accumulated a total of €94bn in proceeds in Q3’23. This represented a decline of 48.8% year-on-year (YoY) and 46.5% quarter-on-quarter (QoQ). Green bond issuance decreased 30.7% YoY (-42.6% QoQ). Social bond issuance totalled €9bn in Q3’23 with an annual and quarterly decline of 44.3% YoY and 49.6% QoQ. Sustainable bond issuance decreased 42.5% YoY but increased 17.3% QoQ. Sustainability-linked and green loan origination decreased 68.6% YoY and -58.3% QoQ. One green RMBS for €895mm was issued in Q3’23, accumulating a total of c€2bn in ESG securitisation issuance year-to-date. Carbon prices decreased in the EU and UK during Q3’23, with European Union Allowance (EuA) carbon prices finalizing September 2023 at €80/Tn, from €87/Tn at the end of June. UK carbon prices accumulated a decline of 27% over the same period. Global ESG Funds reached $7.8tn in AuM as of Q3’23, representing a 6.7% increase from Q3’22 but a decrease of 11.3%when compared to Q2’23. The decline in Global ESG funds was accompanied by net investor outflowswhich accumulated a total of $37.2bn during Q3’23. ESG price premia: spreads of corporate ESG bonds against non-sustainable benchmarks did not materially change in the third quarter of the year, from c2bps at the start of July 2023 to c1.7bps in late September 2023. AFME new report: AFME has recently published a new report 'Sustainable Finance in the EU: Priorities to unlock financing and investment’. The paper outlines AFME members’ views and recommendations on the functioning of the current EU sustainable finance framework and the implementation challenges that banks face in applying it to financing companies.

AFME is pleased to circulate the European Securitisation Data Snapshot for Q3 2023. Key highlights: Q3 2023 European Issuance In Q3 2023, EUR 39.5 bn of securitised product was issued in Europe, a decrease of 58.6% from Q2 2023 (EUR 95.4 bn) and an increase of 0.4% from Q3 2022 (EUR 39.4 bn). Of this, EUR 24.4 bn was placed, representing 65.6% of the total, compared to EUR 20.3 bn placed in Q2 2023 (representing 21.3% of EUR 95.4 bn) and EUR 19.0 bn placed in Q3 2022 (representing 48.2% of EUR 39.4 bn). In Q3 2023, Pan-European CLOs led placed totals, followed by UK RMBS and German Auto ABS: Pan-European CLOs increased from EUR 4.9 bn in Q2 2023 to EUR 6.5 bn in Q3 2023; UK RMBS decreased from EUR 6.1 bn in Q2 2023 to EUR 6.0 bn in Q3 2023; and German Auto ABS increased from EUR 1.9 bn in Q2 2023 to EUR 2.3 bn in Q3 2023.

Report highlights include: EU Member States and the UK issued EUR 898 bn in bonds and bills throughout 2Q23, which represents a decrease of 5% (QoQ) compared to 1Q23, and an increase of 21% (YoY) compared to 2Q22.The UK has had the largest nominal increase in total (bond and bill) issuance in H1 2023, with volumes up 78%. In Germany and Austria, issued volumes rose to record-highs, outsizing first-half issuance observed during the pandemic. Record trading volumes continued in European (EU+UK) government bonds during Q2 2023, according to MarketAxess TraX. The traded amount in Q2 2023 was the highest average daily trading volume in European government bonds since records began in 2014, with trading volume increasing 3% (QoQ) and 15% (YoY). Outstanding amount of European ESG government bonds reached EUR 406 bn during 2Q23. Volumes were driven by new green bonds issued by Germany (EUR 11.8 bn), Italy (EUR 10.0 bn) and Austria (EUR 3.0 bn) with additional tap issuance by the UK (EUR 7.0 bn), France (EUR 2.6 bn), Spain (EUR 1.4 bn) and the European Commission (EUR 1.7 bn). Austria issued an additional EUR 1.5 bn in green bills during 2Q23 and Cyprus became the sixteenth EU sovereign to enter ESG markets in April 2023, issuing an inaugural sustainable government bond (EUR 1.0 bn). From April 2023 to October 2023, there were 3 exits and 3 entries of banks to European Primary Dealer systems, affecting sovereign debt markets in Slovenia, Italy, Ireland, and the European Primary Dealer Network (EU PDN). During 1Q23 there were 2 long-term credit rating upgrades for European countries and 1 downgrade. This follows 2 upgrades and 1 downgrade in 1Q23, bringing the 2023 year-to-date total to 5 upgrades and 3 downgrades (there was 1 further upgrade and 1 downgrade in 3Q23 to date). The average bid-cover ratio (demand/amount allocated) was 2.2 in 2Q23, an increase of 1.7% (QoQ) from 1Q23 and a decrease of 2.1% from 2Q22 (YoY).

The Report contains European leveraged finance market trends for the second quarter of 2023, which includes issuance and credit performance figures for the high yield and leveraged loan markets. Key highlights: European leveraged finance issuance (leveraged loans and high yield bonds) accumulated €63.6 billion in proceeds in 2Q’23, an 11.0% increase from €57.3 billion in 1Q’23 and up 1.4% from €62.7 billion in 2Q’22. High yield bond issuancetotalled €19.5 billion on 59 deals in 2Q'23, a 47.7% increase from €13.2 billion in 1Q’23 and a 77.2% increase from €10.9 billion in 2Q’22. The proportion of USD-denominated issuance increased to 24.8% of all issuance in 2Q'23, up from 10.8% in 1Q’23 and 12.3% in 2Q’22. The leading use of proceeds for high yield bond issuance in 2Q'23 was Repay Debt/Refinancing, at €9.9 billion, which was higher than €4.5 billion in 1Q’23 and than €1.1 billion in 2Q’22. Leveraged loan issuanceincluding first lien, second lien, and mezzanine financing, totaled €44.11 billion in 2Q'23, up 0.1% from €44.08 billion in 1Q’23 and down 14.9% from €51.8 billion in 2Q’22. Three sectors accounted for 39.9% of leveraged loan issuance in 2Q’23. The leading sector was Retail (€7.1 billion or 16.1% of total), followed by Professional Services (€5.6 billion, 12.7%), and Leisure & Recreation (€4.9 billion, 11.1%), with the balance split between 16 other sectors. Credit quality:S&P reported the trailing 12-month speculative-grade default rate at 3.1% in June 2023, an increase from 3.0% in March 2023. Moody's reported the speculative-grade default rate at 2.9% in June 2023, up from 2.6% in March 2023. There were 11 bond defaults reported in the 2Q’23 by Standard and Poor’s and Moody’s. The most frequent reasons were distressed exchange (for 7 of them) and Bankruptcy (for 2 of them). Fitch reported an increase in European Leveraged Loan default rates (by number of deals) to 2.6% in June 2023 from 1.26% in December 2022. According to Reorg, 91% of the European leveraged loan deals examined in 2Q’23 were covenant-lite.

AFME is pleased to circulate its Q2 2023 Securitisation Data Report. Main findings: In Q2 2023, EUR 95.4 bn of securitised product was issued in Europe, an increase from EUR 35.9 bn in Q1 2023 and an increase from EUR 34.5 bn in Q2 2022. Increased issuance was principally driven by a large French retained RMBS deal from the BPMHL programme (EUR 49.5 bn) issued in May 2023. Excluding this large deal, total securitisation issuance would have increased by 32.8% YoY (27.9% QoQ) only. Due to the same deal, which was originated by Groupe BPCE, retained issuance specifically has also increased to EUR 75.1 bn, the highest quarterly retained volume since Q2 2014. Outstanding volumes (including CLOs) increased to EUR 1178.3 bn at the end of Q2 2023, an increase of 3.6% QoQ. Credit Quality: In Europe, upgrades comprised 91% of total rating actions by the main CRAs during Q2 2023, up from 87% of total rating actions during Q1 2023. STS issuance: In Q2 2023, EUR 21.2 bn of securitised product was notified as STS to ESMA and the FCA, representing 22.2% of the total issued volume in Q2 2023 (EUR 95.4 bn). Out of the EUR 21.2 bn in STS issuance, EUR 10.8 bn was placed, representing the highest quarterly EU+UK placed STS issuance since Q4 2021 and 53.1% of total placed issuance in Q2 2023 (EUR 20.3 bn). SRT issuance: Based on SCI data, quarterly SRT issuance in Europe reached EUR 20.4 bn in Q2 2023, an increase of 48.4% from Q1 2023 and an increase of 131.6% from Q2 2022.

AFME is pleased to circulate its European ESG Finance quarterly data report for the second quarter of 2023. The aim of this report is to provide detailed data and analysis on the rapidly growing Sustainable Finance market in Europe. This Report contains up to date trends for the European Sustainable Finance market as at 30 June 2023, as well as a high-level regulatory and supervisory snapshot. Key highlights: European ESG bond and loan issuance accumulated €151bn in proceeds during Q2’23, declining 23.9% year-on-year (YoY) and 11.1% quarter-on-quarter (QoQ). Half year volumes for ESG-labelled bonds increased 17% YoY predominantly driven by the robust green bond issuance during Q1’23. Sustainable-linked bond market witnessed a sharp decline in Q2’23 at 46.5% QoQ and a 16.3% YoY decrease. No ESG securitisation issuance was recorded in Q2’23. Carbon prices: EU and UK carbon prices have diverged in the course of the year, with European Union Allowance (EuA) carbon prices standing 10% above December 2022 levels while UK carbon prices have accumulated a decline of 35% over the same period. Global ESG Funds decreased marginally during Q2’23 Funds with an ESG mandate (including Mutual Funds and ETFs) reached a value of $8.4tn as of Q2’23, representing a 25.3% increase from Q2’22 but a marginal decrease of 0.1% when compared to Q1’23. The marginal quarterly decline was accompanied by net fun outflows, which accumulated a total of $26.3bn during the second quarter of 2023. ESG price premia: spreads of corporate ESG bonds against non-sustainable benchmarks widened in the second quarter of the year from c0.2bps at the start of April to c1.8bps in late July 2023. Regulatory update: We present a selective list of upcoming European initiatives for 2023. For a more comprehensive update please see AFME and Linklaters report Sustainable Finance in Europe: Regulatory State of Play (2023 updated edition)

AFME is pleased to circulate itsEquity Primary Markets and Trading Report for the second quarter of 2023 (Q2 2023).The report provides an update on the performance of the equity market in Europe in activities such as primary issuance, Mergers and Acquisitions (M&A), equity liquidity structure, and market valuations. Key findings: Equity underwriting on European exchanges for the first half of 2023 rose 28% YoY on the back of stronger secondary equity offerings. IPOs accumulated €1.3bn in deal value in Q2’23, the lowest Q2 amount since 2009. For the first-half total, IPOs declined 42% also representing the lowest H1 amount since 2009. European SPAC IPOs have visibly declined from a peak of €3.2bn in Q2’21 to no deals in Q1’23 and €0.9bn in Q2’23. Completed Mergers and Acquisitions (M&A) during H1’23 declined when measured as announced value (-45% YoY) and when measured as completed value (-46% YoY). De-SPACS represented 1.4% of the total M&A value announced during H1’23, below the proportion observed during 2021FY (5%) but the same proportion of 2022FY (1.4%). Average daily equity trading on European main markets and MTFs stood at €79.9bn in H1’23, a 14% decrease compared to H1’22. Double Volume Cap (DVC) update: The number of instruments suspended under the DVC stood at 313 in July 2023 (551 in December 2022). By geographical location, 198 of the 313 suspended instruments have EU ISINs (or 63% of the total number of suspended instruments), 7 have UK ISINs (2% of suspensions) and 104 from the rest of the world (or 35% of suspensions). European equity trading mix: According to BigXYT data, on-venue trading represented 72% of the total addressable liquidity in Q2’23. Volume traded off-venues, on systematic internalisers and pure OTC, represent the remaining 28% of the volume of the total addressable liquidity.

AFME is pleased to circulate the European Securitisation Data Snapshot for Q2 2023. Key highlights: Q2 2023 European Issuance In Q2 2023, EUR 95.4 bn of securitised product was issued in Europe, an increase from EUR 35.9 bn in Q1 2023 and an increase from EUR 34.5 bn in Q2 2022. Increased issuance was principally driven by a large French retained RMBS deal from the BPMHL programme (EUR 49.5 bn) issued in May 2023. Excluding this large deal, total securitisation issuance would have increased by 32.8% YoY (27.9% QoQ) only. Due to the same deal, which was originated by Groupe BPCE, retained issuance specifically has also increased to EUR 75.1 bn, the highest quarterly retained volume since Q2 2014. Of the total amount issued, only EUR 20.3 bn was placed, representing 21.3% of the total, compared to EUR 19.9 bn placed in Q1 2023 (representing 55.4% of EUR 35.9 bn) and EUR 16.4 bn placed in Q2 2022 (representing 47.4% of EUR 34.5 bn). In Q2 2023, UK RMBS led placed totals, followed by Pan-European CLOs and German Auto ABS: UK RMBS increased from EUR 4.9 bn in Q1 2023 to EUR 6.1 bn in Q2 2023; Pan-European CLOs decreased from EUR 6.7 bn in Q1 2023 to EUR 4.9 bn in Q2 2023; and German Auto ABS decreased from EUR 4.2 bn in Q1 2023 to EUR 1.9 bn in Q2 2023.

Report highlights include: EU Member States and the UK issued EUR 944 bn in bonds and bills throughout 1Q23, which represents an increase of 20% (QoQ) compared to 4Q22, and an increase of 19% (YoY) compared to 1Q22.The UK had the largest increase in total (bond and bill) issuance during 1Q23, with first-quarter issuance up 77% YoY compared to 1Q22, driven by a surge in Gilt issuance. There werealso increased volumes of bonds issued in Germany, France and Spain during 1Q23, while in the Netherlands and Austria there was a significant increase in treasury bill issuance. Record trading volumes in European (EU+UK) government bonds during Q1 2023, according to TraX data from MarketAxess. The traded amount in Q1 2023 was the highest average daily trading volume in European government bonds since records began in 2014, with trading volume increasing 22% (QoQ) and 6% (YoY). Outstanding amount of European ESG government bonds reached EUR 359 bn during 1Q23. Volumes were driven by tap issuance by the European Commission (EUR 6.0 bn), the UK (EUR 5.8 bn), France (EUR 3.2 bn), Germany (EUR 3.0 bn), Italy (EUR 2.4 bn), Belgium (EUR 0.9 bn), Hungary (EUR 0.05 bn) and additional green bond references issued in Ireland (EUR 3.5 bn) and Austria (1.4 bn). Austria became the first sovereign worldwide to issue green commercial paper in March 2023, after issuing the first sovereign green bill in October 2022. There was a net loss of 3 primary dealers in Europe from January 2023 to April 2023. There were 3 exits and no entries of banks to European Primary Dealer systems affecting the Bulgarian sovereign debt market and the European Commission Primary Dealer Network (EU PDN). During 1Q23 there were 2 long-term credit rating upgrades for European countries and 1 downgrade. This was followed by 1 further upgrade and 1 downgrade in 2Q23to date, bringing the 2023year-to-date total to 3 upgrades and 2 downgrades. The average bid-cover ratio (demand/amount allocated) was 2.1 in 1Q23, an increase of 3.2% (QoQ) from 4Q22 and a decrease of 5.0% from 1Q22 (YoY).