U.S. Capital Markets Glide Path to Clearer Skies

If 10-Year goes to 3.5%, Baa goes to 5.0%

Comparative yields across other asset classes have already adjusted upward

Investment grade corporate bond yields are important because cap rates historically track well with this investment alternative.

18

Forecast

16

14

12

8 10

6

3.5% 5.0%

2 4

0

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

2013

2017

2021

2025

10-Year Treasury Yield

Baa Corporate Bond

53

Source: Federal Reserve, Moody’s Investor Services, Cushman & Wakefield Research