1. Abel Noser presentation to the Fixed Income Forum June 1 st,2006 Peter Weiler Senior VP 646-432-4050 or pweiler@abelnoser.com

2. TABLE OF CONTENTS Introduction and history of Abel Noser Drivers of measurement analysis Market and trade data challenges Methodology Client reporting Future of fixed income measurement

3. INTRODUCTION AND HISTORY OF ABEL NOSER

4. WHO WE ARE Leading provider and pioneer of equity trade cost analysis Firm started in 1975 and began measuring on behalf of pension funds in 1985 Introduced fixed income product in late 2005

5. CLIENTS 500 global pension funds and investment manager organizations Pension fund clients primarily wish to measure more of their allocated investment dollars Investment manager fixed income clients are typically in a mutual fund complex with a goal of best practice and compliance

6. DRIVERS OF MEASUREMENT Regulatory environment Client and prospect inquiries Improved market and trade data Future need for improved investment performance in a difficult period

7. DATA CHALLENGES Inconsistent market data reporting by bond type Incomplete and or delayed reporting Off exchange or derivative bond trading Spotty volume or pricing reporting Enormous universe of fixed income securities data-many inactive securities

8. DATA SOURCES Corporate bond data provided by TRACE Treasuries and Agencies data provided by TELERATE Municipal bond data is reported to the MSRB (Municipal Securities Rulemaking Board) Mortgage backed and asset backed data provided by BLOOMBERG

9. METHODOLOGY Measure costs: –versus a single point in time: strike price –versus an average price across a span of time Compare results to other investors’ results in specific classes of bonds Organize information by strategy, order instructions, size of trade to gain greater insight

10. TIMELINE OF A TRADE Prev. CloseNext Open Decision Opn Ent Plcmt Fills Completion Cls Order First Day Opn Ent Plcmt Fills Completion ClsOrder Last Day Close Multi-Day Order PM Decides Markets Opens Buy-Side Trader Receives Order Sell-Side Broker Receives Order Execution Completion Markets Closes Prev. CloseNext Open Decision Open EntryPlacement FillsCompletionClose

11. CLIENT REPORTING

12. INVESTMENT MANAGERS

14. PENSION FUNDS

15. SAMPLE CLENT CLIENT FIXED INCOME

16. SAMPLE CLIENT FIXED INCOME

20. FUTURE OF FIXED INCOME MEASUREMENT

21. Translucent marketplace will slowly become more transparent. Pension funds will increasingly measure their fixed income transactions. Managers will use measurement for compliance purposes initially and as market data becomes more robust will use as a tool to perform pattern analysis and improve costs. Sunshine will help save all investors money.

22. ABEL NOSER One Battery Park Plaza New York, N.Y 10004 1-800-322-2610 www.abelnoser.com