BlackRock Global Long/Short Credit Absolute Return Credit

BlackRock's Fundamental Credit Analysis Framework We leverage our relationships with issuers, their competitors, customers, suppliers and consultants, our clients and counterparties to develop a global investment perspective Framework combines quantitative assessment of corporate capital structures with qualitative perspective on management and industry positioning Fundamental Analysis Industry Assessment • Macro economic view • Market demand & growth potential Competitive Position • Operating performance & event risk • Revenue/cashflow diversification Management Quality • Experience and depth of resources • Operating track record Financial Position • Ability to pay obligations • Access to capital markets • Liquidity and refinancing needs • Event risk • Investor confidence BLACKROCK® For illustrative purposes only ● ● Desired characteristics Strong management team • Pricing power and ability to maintain/expand margins Free cash flow to reduce debt ● ● Analysis Considerations Key Investment Factors ● Covenants and prudent capital structure Catalyst to reduce credit risk Characteristics to avoid Volatility of revenues/cash flows Seasonal, project-oriented or start-up ventures Poorly defined downside risks Litigation, environment & regulatory issues Weak or shareholder-friendly management teams Industries at a competitive disadvantage ● Significant market presence facilitates analysis • One-on-one company meetings Relationships with industry consultants and outside legal counsel • Favorably impact new issue pricing and covenants with underwriters Source transactions on favorable terms FOR FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC. BlackRock Credit View USR0418U-470515-1498457 26

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