Dorian Jamison, Municipal Analyst
Municipal
Market Update
A timely look at trends and
developments for muni bond
investors
January 15, 2015
Strong reinvestment demands helps drive muni yields near all-time lows
Seasonal reinvestment demand remains strong which will help offset this week’s supply increase. As
reported on January 7, U.S. municipal bond funds posted net inflows of $1.3 billion, the 25th inflow in 26
weeks and the largest inflow in more than 12 months.
Yield curve
The spread between the Municipal Market Data
(MMD) 10-year triple-A benchmark yield and the
MMD 30-year triple-A benchmark yield has fallen to
just 76 basis points, as of January 14, representing
the smallest spread since late-October 2008 (See
Figure 1). Since New Year’s Day, the Municipal
Market Data (MMD) 10-year triple-A benchmark has
fallen 22 bps to 1.78 percent, a 12-month low and
down 84 basis points year-over-year. The 10-year
yield remains 31 basis points higher than its all-time
low of 1.47 percent, which was set on November 28,
2012.
5 Year
AAA Yield
AA
A
BBB
Current
1.07
13 bps
33 bps
83 bps
Spreads to AAA
Thom son MMD Curve
1-Day
1-Week 1-Month
(4.5%) (13.7%) (11.6%)
(7.1%)
(7.1%)
(0.0%)
(2.9%)
(2.9%)
(0.0%)
(1.2%)
(1.2%)
(2.4%)
10 Year
AAA Yield
AA
A
BBB
Current
1.78
20 bps
54 bps
97 bps
1-Day
(3.3%)
0.0%
0.0%
0.0%
1-Week
(5.8%)
0.0%
(0.0%)
0.0%
1-Month 3-Month 1-Year
(10.1%) (10.6%) (32.6%)
(4.8%)
5.3%
(9.1%)
(3.6%)
0.0% (29.9%)
(4.0%) (7.6%) (36.2%)
30 Year
AAA Yield
AA
A
BBB
Current
2.54
23 bps
53 bps
89 bps
1-Day
(3.1%)
0.0%
(1.9%)
(1.1%)
1-Week
(4.9%)
0.0%
(3.6%)
(2.2%)
1-Month
(11.8%)
0.0%
(5.4%)
(4.3%)
3-Month
(0.9%)
62.5%
6.5%
(1.2%)
3-Month
(12.7%)
15.0%
(1.9%)
(5.3%)
1-Year
(8.5%)
18.2%
(36.5%)
(33.6%)
1-Year
(36.7%)
(4.2%)
(30.3%)
(32.1%)
Source: Thomson Municipal Market Monitor (TM3)
Past performance is not an indication of future results.
During the same time, the (MMD) 30-year triple-A
benchmark has fallen 29 basis points to 2.54 percent,
a two-year low and down 143 basis points year-over
year. The 30-year yield is only seven basis points
higher than its all-time low of 2.47 percent, which
was also set on November 28, 2012 (See Figure 2).
Supply
Tax-exempt new issue supply is expected to total
$6.6 billion this week, up from $4.94 billion last week
and more than the 2014 weekly average of $5.7
billion. Supply is expected to remain above average
during January. The Bloomberg 30-day visible
municipal supply was $8.5 billion on January 5,
which is above the 12-month average of $7.7 billion.
Despite declining almost 14 percent during the first
half of 2014, supply increased more than 16 percent
during the second half of 2014. However, 44 weeks of
inflows into municipal bond funds during 2014
enabled the market to accommodate the supply
increase during the 2H2014.
Demand
Reinvestment demand remains strong which will
help offset this week’s supply increase. U.S.
municipal bond funds posted the 26th inflow in 27
weeks. As reported on January 14, net inflows were
$688.5 million, compared with inflows of $1.3 billion
the prior week, a 12-month high. Historically,
January redemption needs, due to investors needing
to reinvest principal and coupon payments, have
totaled around $30 billion.
Please see pages 8-10 of this report for Important Disclosures, Disclaimers and
Analyst Certification
Page 1 of 10
Municipal Market Update
Inflows into municipal bond funds, a proxy for
demand, rebounded in 2014. According to Lipper
FMI—after ending 2013 with 31 consecutive weeks of
outflows—municipal bond funds experienced net
inflows 44 out of 52 weeks during 2014, totaling
more than $13.1 billion. U.S. municipal bond funds
posted 24 consecutive weeks of inflows from July 16
until seeing a modest outflow during the final week
of 2014.
New issue spotlight
Among the high quality deals scheduled to price
this week is a $474 million King County, WA sewer
system revenue bond sale. King County’s sewer
system provides treatment services to 33 municipal
and 3 non-municipal agencies in King and
Snohomish counties, as well as the Muckleshoot
Tribe. The system service area covers 415 square
miles in the Seattle metropolitan area with a
population of approximately 1.5 million residents.
The city of Seattle represents the largest user of the
system at 40.1% and the city of Bellevue represents
the second largest user at 8.7%.
The system’s bonds are secured by a senior lien on
net revenues of the county's sewer system. King
County sewer revenue bonds are rated “Aa2” with a
stable outlook by Moody’s Investors Service
(Moody’s) and “AA+” with a stable outlook by
Standard & Poor’s (S&P). The system's high credit
ratings are based on its role as the major wastewater
treatment provider in a broad and economically
diverse region with high median household income
levels. Partially offsetting its credit strengths is the
system’s large capital improvement plan totaling
$1.1 billion during fiscal years 2014 through 2019 and
an additional $2 billion through 2030.
Based on recent trades, King County sewer system
revenue bonds are relatively undervalued in the
secondary market. On January 6, King County sewer
system revenue bond (CUSIP 495289ZE3), due
January 2025 and callable January 2021 at par,
traded at a dollar price of $117.377 to yield 2.974
percent (yield-to-maturity), which was 87 basis
points higher (cheaper) than the Bloomberg
Washington municipal benchmark. This spread is
January 15, 2015
more than two standard deviations wider than the
12-month average, suggesting that the bonds are
undervalued relative to the Bloomberg Washington
municipal benchmark. If there is a mean reversion
these bonds would be likely to outperform (See
Figure 3).
Credit spread tightening
Municipal bond outperformance and historically low
yields lead many investors to move down the credit
scale in search of yield during 2014, causing the
difference between yields on lower quality bonds
and high quality bonds to narrow (i.e. credit spread
tightening). Credit spread refers to the difference in
yield between two issues that are identical in all
respects other than their credit quality. Wells Fargo
Advisors (WFA) Municipal Research continues to
point out that a preference for lower rated bonds is
not without risk in a still challenging credit
environment, since lower rated credits might
experience weak performance should spreads widen
back to their recent averages.
The current spread relationship suggests that tripleB bonds are currently fully valued relative to high
quality municipal bonds, which suggests that
investors may not be compensated for the added
credit risk that triple-B bonds can represent. Since
peaking at an all-time high of 354 basis points on
March 31, 2009 the credit spread between 10-year
triple-B rated municipal bonds and triple-A
municipal bonds has tightened to 97 basis points as
of January 14, a six-year low (See Figure 4).
Triple-B rated bonds, as tracked by the S&P
Municipal Bond BBB Rating Band Index, returned
12.5 percent in 2014, outperforming the broader
municipal market, which returned 8.8 percent, as
tracked by the S&P National AMT-Free Municipal
Bond Index. Value conscious investors may want to
consider locking in gains and reinvesting in higher
quality bonds, with the understanding that it may
not be possible to find the same kind of yield after a
rebalance. Investors who live in states that do not
tax out-of-state municipal bonds may also want to
consider out-of-state bonds for additional yield
opportunities.
Page 2 of 10
Municipal Market Update
January 15, 2015
Figure 1: MMD “AAA” GO 10YR to 30YR Yield Curve Slope (Oct. 24, 2008 – Jan. 14, 2015)
206 bps
@ 1/30/09
(All-Time
High)
121 bps
Three-Year Average
83 bps
@ 10/24/08
76 bps
@ 1/14/15
(Six-Year
Low)
Source: Thomson Municipal Market Monitor (TM3), WFA Municipal Research
Past performance is not an indication of future results.
Figure 2: MMD “AAA” General Obligation 30YR Yield (Jan. 14, 2012 – Jan. 14, 2015)
4.51%
@ 9/5/13
(Three-Year High)
3.17%
@ 1/17/12
3.33%
Three-Year Average
2.47%
@ 11/28/12
(All-Time Low)
2.54%
@ 1/14/15
(Two-Year
Low)
Source: Thomson Municipal Market Monitor (TM3), WFA Municipal Research
Past performance is not an indication of future results.
Page 3 of 10
Municipal Market Update
January 15, 2015
Figure 3: King County, WA (CUSIP 495289ZE3) (Jan. 14, 2014 – Jan. 14, 2015)
Source: Bloomberg
Past performance is not an indication of future results.
Figure 4: MMD GO 10YR “Baa” to “AAA” Credit Spread (Jan. 14, 2009– Jan. 14, 2015)
354 bps
@ 3/31/09
(All-time High)
152 bps
@ 1/14/14
(12-Month High)
97 bps
@1/14/15
(Six-Year
Low)
185 bps
(Six-Year Average Line)
131 bps
@ 5/28/13
Source: Thomson Municipal Market Monitor (TM3)
Page 4 of 10
Municipal Market Update
Municipal Credit Monitor
The WFA Municipal Credit Monitor table (MCM)
shows the weekly change in the spread relationship
between the yield to maturity of representative
holdings of WFA clients’ municipal bonds and the
Bloomberg “AAA” municipal benchmark. The
Municipal Credit Monitor table can be used to help
identify undervalued and overvalued states, sectors
and credits by highlighting the change in yield
spreads and the magnitude of the yield spread in
terms of the standard deviation from their averages.
Bond prices and yields have an inverse relationship.
Widening yield spreads are highlighted in red to
indicate cheapening in bond prices relative to the
January 15, 2015
“AAA” municipal benchmark. Tightening yield
spreads are highlighted in green to indicate bond
prices that are getting richer relative to the “AAA”
municipal benchmark. Standard deviations
highlighted in red are greater than or equal to two
standard deviations above the average, indicating
cheapness relative to the “AAA” municipal
benchmark. Standard deviations highlighted in
green are greater than or equal to two standard
deviations below the average, indicating richness
relative to the “AAA” municipal benchmark. While
standard deviations highlighted in yellow are
between one and two standard deviations away from
the average, and should be monitored for relative
value.
Page 5 of 10
Municipal Market Update
SELLING
01/12/2015
01/12/2015
01/12/2015
01/12/2015
01/12/2015
01/12/2015
01/12/2015
01/12/2015
01/16/2015
01/12/2015
ISSUE
NYC TRANSITIONAL FIN AUTH
KING CNTY -SWR -REF -A
ILLINOIS FIN AUTH -REF -A
MET TRANSPRTN AUTH -A1
OR DEPT OF TRANSPRTN -REF
TOBACCO SETTLE FIN CO -A
TOBACCO SETTLE FIN CO -B
KING CNTY
-REF -A
FL ST BOE-PUB ED- REF-A
LAKELAND -HOSP
January 15, 2015
ST AMT (MM)
NY
750.000
WA
474.025
IL
410.470
NY
400.000
OR
381.305
RI
336.065
RI
257.590
WA
247.825
FL
236.495
FL
180.000
TAX
N
N
N
N
N
N
N
N
N
N
Weekly Calendar
SR. MGR
STATUS
SAMUEL A RAMIREZ & CO INC FINAL
JP MORGAN SECURITIES LLC FINAL
GOLDMAN SACHS & COMPANY THUR
JP MORGAN SECURITIES LLC THUR
MORGAN STANLEY & CO INC
FINAL
CITIGROUP GLOBAL MKTS INC DAY/DAY
CITIGROUP GLOBAL MKTS INC DAY/DAY
JP MORGAN SECURITIES LLC FINAL
18 HOUR NOTICE
JP MORGAN SECURITIES LLC THUR
RATING
Aa2/AA
Aa1/AA+
A1/A+
NR/AAAa1/AAA
APPLIED/APPLIED
NR/
Aa1/AAA
Aa1/AAA
NR/
SECURITY
Appropriations
Water & Sewer
Hospital
Public Transportation
Non-Toll Highway
Tobacco Master Settlement Agreement
Tobacco Master Settlement Agreement
General Obligation
General Obligation
Hospital
Source: Bloomberg
Noteworthy Downgrades
Moody's
Issuer Name
Current Rating
Previous Rating
Dallas County Schools, TX
East Ramapo Central School District, NY
Albany Capital Resource Corporation, NY
East Allegheny School District, PA
Multnomah-ClackamasCosSD28JT(Centennial), OR
A3
Baa2
Baa3
Baa3
A1
Aa3
Baa1
Baa2
Baa2
Aa3
S&P
Issuer Name
Current Rating
Previous Rating
New York State Dorm Auth (Brooklyn Law School)
Jefferson Parish Hosp Svc Dist #1, LA
Stevenson Utils Brd, AL
Grosse Ile Twp Schs, MI
Cameron Ed Corp, TX (Faith Family Academy)
BBB
BBBBBBA
BB+
BBB+
BBB
AAABBB-
Source: Moody’s Investors Service and Standard & Poor’s
Downgrade Date
12/23/2014
12/22/2014
12/18/2014
12/16/2014
12/15/2014
Downgrade Date
1/13/2015
1/13/2015
1/12/2015
1/9/2015
12/31/2014
NR = Not Rated.
NA = Rating is currently not available.
WR = Withdrawn Rating
APPLIED = Rating has been applied for by the issuer, but not yet assigned by the rating agency.
“e” after a rating = The expected rating for a particular bond.
Page 6 of 10
Municipal Market Update
January 15, 2015
Municipal Credit Monitor as of January 14, 2015
Benchmark1
1.931
Yield Spread-to-
Spread Change
# BPs Current Spread is
# Std Dev Current Spread is
(Moody's/S&P)
Yield
Benchmark3
(Weekly)4
(12-Month)
(12-Month)
(12-Month)
Above or Below Avg.5
Above or Below Avg.6
Aa3/A
Aa1/AA+
Aaa/AAA
Aa3/AAAa1/AAA
A1/A
Aaa/AAA
A3/AAaa/AAA
Aa1/AA+
Aaa/AAA
Aa2/AAAa1/AA+
Aaa/AA+
Aa1/AA+
Aaa/AAA
2.110
2.013
2.018
2.261
2.082
2.446
1.894
3.291
1.920
2.050
1.950
2.182
2.064
2.022
2.108
1.942
17.9
8.2
8.7
33.0
15.1
51.5
-3.7
136.0
-1.1
11.9
1.9
25.1
13.3
9.1
17.7
1.1
-33.00
-21.90
-17.90
-0.70
-20.40
16.60
-9.00
-18.60
-11.30
-15.40
-9.20
-41.10
-12.70
3.10
-20.60
-21.10
17.2
-0.2
0.8
25.2
10.3
19.4
-5.9
108.7
-10.4
11.9
-1.3
24
9.1
-4.3
11.2
0.2
53.2
32.9
32.5
39.2
40.4
62.5
11.4
167.5
12.6
39.2
15.3
81.4
30.5
14.6
40.9
23.7
31.8
15.3
11.7
33.8
20.2
42.4
-0.2
138.2
-0.9
24.3
5.2
43.4
18.9
8.4
23.8
7.5
-13.94
-7.08
-2.98
-0.76
-5.11
9.13
-3.51
-2.15
-0.15
-12.42
-3.27
-18.28
-5.64
0.65
-6.08
-6.38
-1.5
-0.9
-0.4
-0.3
-0.7
0.8
-1.2
-0.1
0.0
-2.1
-1.4
-1.1
-1.1
0.2
-1.0
-1.6
2.079
2.203
3.502
2.023
1.714
2.241
2.092
14.8
27.2
157.1
9.2
-21.7
31.0
16.1
-9.10
-48.70
42.20
-25.70
-15.60
-22.50
5.10
5.9
25.8
71
-22.3
-38.5
-5.3
-4.9
57.6
110.6
220.8
65.4
33.6
55
19
28.4
72.3
133.6
28.9
-3.3
23.6
9.0
-13.64
-45.05
23.50
-19.72
-18.43
7.42
7.07
-0.8
-1.6
0.9
-0.7
-0.9
0.5
1.4
9.135
3.194
4.088
3.368
3.029
4.442
4.099
3.831
3.410
720.4
126.3
215.7
143.7
109.8
251.1
216.8
190.0
147.9
-5.90
-42.70
68.90
44.30
1.50
108.00
6.40
41.50
39.00
554.8
119.7
135.8
98.9
87.8
134.9
184.4
155.9
92.3
758.5
174.7
224.4
143.7
117.1
251.1
229.4
361.8
147.9
664.3
145.6
173.2
121.1
107.0
197.2
211.3
288.4
113.4
56.07
-19.27
42.53
22.61
2.79
53.88
5.47
-98.39
34.47
1.2
-1.3
2.0
1.9
0.5
2.0
0.6
-1.5
2.5
Ratings
States2
California
New York
Texas
Pennsylvania
Florida
New Jersey
North Carolina
Illinois
Virginia
Ohio
Georgia
Michigan
Massachusetts
South Carolina
Washington
Maryland
Sectors7
AA+ general ob
A+ general ob
BBB general ob
Transportation AA+
Education AAA
Healthcare AA
Utilities AA
Credits8
Commonwealth of Puerto Rico
Dallas/Fort Worth International Airport
County of Miami-Dade FL
New Jersey Transportation Trust Fund Authority
Municipal Electric Authority of Georgia
Port Authority of New York & New Jersey
Chicago IL GO
Detroit, MI Water
New York City GO
Source: Bloomberg
B2/BB
A2/A+
Aa2/AA
A2/AA1/A
Aa3/AABaa1/A+
Ba2/BBB+
Aa2/AA
Lowest Spread Highest Spread Average Spread
1
BVAL Muni 10-Yr Benchmark curve is the baseline curve for BVAL tax-exempt munis. It is populated with high quality US municipal bonds with an average rating of AAA from Moody's and S&P. The yield curve is built using nonparametric fit of market data obtained from the Municipal Securities Rulemaking Board, new issues calendars, and other Bloomberg proprietary contributed prices. Represents 5% couponing.
2
State Specific Yield Curves maturing in approximately 10 years
3
Difference between the state, sector, or credit yield and the benchmark yield, in basis points
4
Bond prices and yields have an inverse relationship. Yield spread changes highlighted in red have widened week-over-week, indicating bond prices have gotten cheaper relative to the benchmark. Yield spread changes highlighted in
green have narrowed week-over-week, indicating bond prices have gotten richer relative to the benchmark.
5
Basis points (bps) highlighted in red are above the 12-month average. Basis points (bps) highlighted in green are below the 12-month average
6
Standard deviations highlighted in red are greater than or equal to two standard deviations above the 12-month average, indicating relative cheapness. Standard deviations highlighted in green are greater than or equal to two
standard deviations below the 12-month average, indicating relative richness. Standard deviations highlighted in yellow are between one and two standard deviations away from the 12-month average, and should be monitored for
relative value.
7
Muni Fair Value Yield Indices maturing in approximately 10 years
8
Yield-to-maturity of representative CUSIPs and indexes maturing in approximately 10 years
Page 7 of 10
Municipal Market Update
January 15, 2015
IMPORTANT DISCLOSURES
Wells Fargo Advisors buys and sells securities discussed in this report on a principal basis.
Disclosure information . . . For important disclosure information, please contact:
Wells Fargo Advisors Attn: Advisory Services (Disclosure Information)
One North Jefferson, St. Louis, MO 63103 Or call phone (888) 410-9203
Please remember to specify the issuer(s) with respect to which you would like to receive disclosure
information.
ANALYST CERTIFICATION: The Analyst who prepared this report hereby certifies that the views expressed
in this report accurately reflect his/her personal views about the subject companies and their securities. The
Analyst also certifies that he/she has not been, is not, and will not be receiving direct or indirect compensation
for expressing the specific recommendation(s) or view(s) in this report.
Disclaimers
Prices and figures are as of the date of publication unless specified otherwise.
Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and
credit risk, especially if investing in high yield bonds, which have lower ratings and are subject to greater
volatility. All fixed income investments may be worth less than the original cost upon redemption or
maturity. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest
rates can result in the decline of the value of your investment.
Income from municipal securities is generally free from federal taxes and state taxes for residents of the
issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for
some investors may be subject to the federal Alternative Minimum Tax (AMT).
Although Treasuries are considered free from credit risk they are subject to other types of risks. These risks
include interest rate risk, which may cause the underlying value of the bond to fluctuate.
Taxable equivalent Yield (TEY) is the pretax yield that a taxable bond needs to possess for the yield to be
equal to that of a tax-free municipal bond.
Relative Value is a method of determining an asset's value that takes into account the value of similar assets.
Calculations that are used to measure the relative value of stocks include the enterprise ratio and price-toearnings ratio.
Standard deviation of return measures the average deviations of a return series from its mean, and is often
used as a measure of risk. A large standard deviation implies that there have been large swings in the return
series of the manager.
Page 8 of 10
Municipal Market Update
January 15, 2015
Explanation of Moody’s Investors Service (Moody’s), Standard & Poor’s (S&P) and Fitch Ratings (Fitch)
longer-term corporate debt (greater than one year to maturity) rating scales:
Ratings of
Baa3/BBB- or
higher (above the
dotted line) are
considered
investment grade.
Ratings of Ba1/BB+
or lower (below the
dotted line) are
considered high
yield (also known
as junk bonds).
Moody's
S&P/
Fitch
Aaa
Aa1
Aa2
Aa3
AAA
AA+
AA
AA-
A1
A2
A3
A+
A
A-
The highest quality debt, with minimal credit risk.
High quality and subject to very low credit risk.
Upper-medium grade and subject to low credit risk.
Baa1
BBB+
Baa2
BBB
Subject to moderate credit risk; considered medium-grade, and
Baa3
BBBas such may possess certain speculative characteristics.
---------------------------------------------------------------------------------------------------Ba1
BB+
Ba2
BB
Judged to have speculative elements; subject to substantial credit risk.
Ba3
BBB1
B2
B3
B+
B
B-
Considered speculative and are subject to high credit risk.
Caa1
Caa2
Caa3
CCC+
CCC
CCC-
Judged to be of poor standing and are subject to very high credit risk.
Ca
CC
Highly speculative and are likely in, or very near, default with some
prospect of recovery of principal and interest.
C
C
The lowest rate class of bonds; these obligations are typically in
default with little prospect for recovery.
S&P National AMT-Free Municipal Bond Index is a broad, comprehensive, market value-weighted index
designed to measure the performance of the investment-grade tax-exempt U.S. municipal bond market.
S&P Municipal Bond BBB Rating Band Index includes all bonds in the S&P Municipal Bond Index that have
a Standard & Poor’s rating of between ‘BBB+’ and ‘BBB-‘; a Moody’s rating of between ‘Baa1’ and ‘Baa3’ and a
Fitch rating of between ‘BBB+’ and ‘BBB-‘. If there are multiple ratings, the lowest rating is used.
An index is unmanaged and not available for direct investment.
Wells Fargo Advisors research analysts receive no compensation in connection with the firm’s investment
banking business. Analysts may be eligible for annual bonus compensation based on the overall profitability
of the firm, which takes into account revenues derived from all the firm’s business activities, including its
investment banking business.
The Advisory Services Group (“ASG”) of Wells Fargo Advisors works with information received from
various resources including, but not limited to, research from affiliated and unaffiliated research
correspondents as well as other sources. ASG Strategists provide investment advice based on their own
observations and analysis (both fundamental and quantitative) for the clients of Wells Fargo Advisors and
its affiliates. The Advisory Services Group does not assign ratings to or project target prices for any of the
securities mentioned in this report.
Page 9 of 10
Municipal Market Update
January 15, 2015
The Advisory Services Group (ASG) of Wells Fargo Advisors receives research from affiliated and
unaffiliated correspondent research providers with which Wells Fargo Advisors has an agreement to obtain
research reports. Each correspondent research report reflects the different assumptions, opinions, and the
methods of the analysts who prepare them. Any opinions, prices or estimates contained in this report is as
of the date of this publication and is subject to change without notice.
Additional information available upon request. Past performance is not a guide to future performance. The
material contained herein has been prepared from sources and data we believe to be reliable but we make no
guarantee as to its accuracy or completeness. This material is published solely for informational purposes
and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product.
Opinions and estimates are as of a certain date and subject to change without notice.
Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value
Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC, and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo &
Company. First Clearing, LLC Member SIPC is a registered broker dealer and non-bank affiliate of Wells Fargo & Company. ©2015 Wells Fargo Advisors, LLC. All rights reserved.
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