EFTA Document EFTA01449387

23 August 2013 US Equity Insights 3 reasons not to fear a 3%+ 10yr yield Interest expense is relatively small and likely overpowered by pension swings I figure 1. S&P ex-financials net debt/market cap at 14% is considerably lower than historical levels 70% r 70% ■ 0096 5016 • 50% 40% k 40% 30% 30% 20% 20% 10% 0% 0% Recession Met Debt/ Market Cap Sas Owlish* Sorg Figure 2: Share of long•tenn debt (>1ylat S&P ex. financials has increased to 25% from 75% in 2003 80%-1 E