Hi there, my name is Ricardo Anguiano. I am a technical marketing engineer working for Mentor Graphics. I'm here at ArmTechCon 2016 in Santa Clara. Mentor Graphics is well known in the EDA space. In fact, we were responsible for the creation of the industry way back in the early 80s. Now, we've been in embedded systems for 20 years at this point. There's 20 years in embedded systems right here. So what have you been doing for 20 years? We've been enabling developers with infrastructure like development tools, debug workflows and run times like our Nucleus RTOS and our Mentor Embedded Linux offering. So here you have a demo. What do you do here? That's right. So our team built this case, this cabinet, and it's drawing together a 6x6 grid of NXP K64 freedom boards with touchscreens on the front side. All network together through the switch. And then the controller, the game controller is this IMX6, also an NXP part. So all of this runs our Nucleus real-time operating system. The game controller is driving the touch screen that's on the front of this, the large touch screen, 13 inch. And then each of these has a touch screen as well. And those also run our Nucleus RTOS. You say our Nucleus operating system? That's right. Yes. That's right. This is a proprietary commercial real-time operating system sold by Mentor Graphics. Let's go around here and check out what is this game about? So this game is a memory game. If you follow me around this way, you get a chance to see how this game works. If you reset it, you see our big 20th anniversary logo here. And then if I hit start, you get to see all of the tiles. For just a few seconds, you're supposed to memorize them in your head. And then when they go blank, you're supposed to play the game. And high scores end up here. And we win prizes. Nice. So your score is perfect or 100% or what? No, unfortunately not. Has anybody done that? The high score is not that bad. Has there been any perfect scores? I don't think we have had perfect scores. Not yet. Okay, I'll do it after. Just after the video. Okay. Then over there. Yeah, so if you follow me around one more time, we're going to come over here to where Larry is. Watch it. Watch it. And so this is our industrial automation Makka. We're featuring our safety critical applications here. So you can see the robot here in the video. If you keep zooming this way, you can see there's an opening here where I can break the plane and the sensor will realize that I've broken the plane. If we come over to the control surface here, you can see the alarm status is on. That indicates that something has ended up in the safety zone. And so the robot won't operate at this point. So if I reset the robot or the safety system, I can come over here, operate the robot, and now you can see the robot in operation. Right. Again in here. Oops. Oops, I got too close. Yeah, you broke the plane here and so the alarm status is on. So the robot stopped moving because of that. And the rationale here is that we have two different operating systems running at the same time. One of these is involved with the process control. The other one is responsible for safety. So we can actually crash the system here. If I press the crash button, everything on the left side of that screen will crash. But the safety system will continue to operate. So it's still showing that we've had a violation until we reset the system. So is Nucleus plus safety OS? Yeah, so we have two versions of Nucleus. One is our regular standard Nucleus that we've used for many years now. It's a very mature RTOS. The newer product there is called Nucleus Safety Cert. This is a safety certifiable real-time operating system for safety critical applications. And this is 100% secure? Oh, 100% secure. That's a long conversation. Security is about risk reduction and mitigation. Adhering to practices and standards. Doing things like not shipping default passwords, for example. There's a lot of things you can do to raise the bar. But perfect security, even though I work in marketing, I'm never going to claim that we have perfect security. You're never going to claim that. What if you get it at some point? What if some of these guys invents it? You would be the first to hear about it. I'm not going to tell you we have that today. Because there was an earlier today in the keynote, a quite cool guy was hacking all the cars. So this car, if it's running your system, is not going to get hacked? We hope not. I know that doesn't sound very confidence-inspiring, but I mean, seriously, security is a really tricky subject to get right. There's so many pieces from Secure Boot through vulnerability, patches, later down the line, through the process that is used to create the software. There's a lot of things that you can do to make it more secure, but I don't think anyone here at this show claims to have perfect security. They all have security-enabling technologies, just like we do. Do you work with Embed at all, or is this an alternative to Embed, what you're doing? We work with Embed. Yeah, so Embed is a really clean and easy way to load executables onto the board and then connect into their Embed ecosystem. So there's nothing that prevents us from using Nucleus in that same ecosystem as well. What are we looking at over here? Is this some medical stuff? What is this? That is a Xilinx MP SoC board. This is one of their ultra-scale platforms. It is ARM. It's ARM plus FPGAs, right? So this is the Xilinx Zinc line. So what we're showing here is just a demonstration of an early engineering prototype with our Android port on top of it. What's over there? This right here is a product made by Cepheid. Cepheid is a partner of ours. They've built this system using Mentor Embedded Linux. This is an early, I guess, late-stage prototype. If you'd like to describe it. So my name is Fong Chow. I represent Cepheid. I'm a business solutions manager for Cepheid. I'm here because we partnered with the Mentor team here to use their bit of Linux OS in our products. So this is a late-stage. So you have it in there? Yeah, inside the hardware. So what kind of hardware do you have in there? So this is a molecular diagnostic instrument. So we can run different tests in the field on the go. This is designed to be ultra-portable. There is no cables connected to it. It's currently powered on. It is paired to a phone. In this case, we are using a Nexus 6P Google phone. Any phone would work? No. We are developing for this phone specifically. We have our own app deployed onto the phone. It uses a lot of performance.  No. The processing takes place in the instrument itself, actually. The phone is basically loaded with an app and a software that would lock down the phone's feature. So all the user would have access to is our app to run the instrument and the tech support app, which is basically a web app. So we can see what's going on on the phone. So it's a special image of Android that just has your stuff, really? It's straight up. Right now it's running Marshmallow, actually. So nothing special. What is that stuff? So these guys are the cartridges. So when I say we can run a test, we can run Ebola, testing for Ebola. We can test for HIV, test for flu. This is called a cartridge. Inside the cartridge, we have the chemistry. Obviously, this is an empty one, but if it's a real cartridge, we'll have chemistry, we'll have reagents, we'll have beads. That would, when you apply the sample, when you place the sample in the cartridge and you load the cartridge into the instrument, it's going to process, it's going to analyze the chemistry and provide a result and then send that result to the phone. So it's like a huge lab that does the same stuff? Exactly. So instead of having a huge lab space with an instrument that's about the size of this bench, we are now looking at a footprint of this big, right, to run one test. And Zika. Are you going to sell that? Zika, we are working on that. The Baal team is investigating that right now. Because people are worried about that? Absolutely. So we are, we've got a team looking into that currently. The way this product would be sold is when we launch, it would come one phone with one instrument. And then the customer can buy additional up to three more for a total of four instruments to be paired with one phone. And is this approved by all the medical governors and stuff? We are going into clinical trial in 2017 Q3. After that, we'll get our clearance and approvals and then we'll launch commercially. Can you speed it up? Can you have it ready like Q1? No, it has to go through the test. The clinical trial, right? Because this is a medical device product. Okay. The way they're communicating is two modes. One is through Wi-Fi. So if you are in a small hospital, you can use the hospital's Wi-Fi to connect the instrument and the phone to that Wi-Fi. If you do not have Wi-Fi, we provide a global SIM, such as in a rural area like in Kenya, in South Africa, you don't have internet, you don't have Wi-Fi, we provide a global SIM. Has it been to work with the mental graphics in this? It's been great. They've been supportive. It's a great partnership. Everything is going great so far. It's got to be awesome at mental graphics to be called projects, right? Absolutely. To work on all kinds of special projects. I get pulled into automotive projects, general embedded projects, projects in a number of different verticals, and we're really excited. That's not a casino, but I'm just saying. It's kind of like a casino thing. It is, and I can make it a little bit more casino-like here. Thank you. I'll see if I can. Oh, you can cheat the results? No, no, no, no. In fact, I think that this ran out of batteries. No, I can change the color of the lighting. I was going to make it more casino-like. But to answer your question, I do get a chance to work on a lot of different projects with a lot of very talented teams. We're really excited to have Cepheid as a partner. We don't make medical devices, but we enable things like the product that Cepheid is building today. And how many people are Mentor Graphics, and where are you based? Mentor Graphics is based out of Wilsonville, Oregon. That's about 25 minutes south of Portland. We were founded in 1981, publicly traded. Where a headcount is somewhere north of 5,000 people.


Hi everyone, Joe for jazby's casebreaks.com coming at you with jazby's 27 box Grand Slam Baseball Mixer and we're giving a Tom Brady autograph baseball away. We'll give you a live look at that at the end of the break. But a lot of great stuff here. Also a lot of your orders, almost all of your orders if you bought a spot straight up is going to say 26 boxes. We noticed that that tier one box that's right there just above the just next to the Brady ball was not on the original list but we did pull it so I guess we were going by the picture there or that picture was taken so that's what was in the container. Anyway there it is. Tier one baseball pictured but not on the original list of boxes so there's total of 27 boxes. So if you bought into a thinking that boy 26 boxes what a deal. Well not even a better deal because there's an extra box on it and we'll do a wax party randomizer at the end. We'll do two different dice roll or two different lists. One dice roll two lists. First main list will be name on top wax party and then the second list will be the Brady ball.  I appreciate it. We only do one filler so congrats again on people onto the people who won spots. All 30 baseball teams are in. Let's do it. Let's roll it. Randomize names and teams. Snake eyes two times. One and two and then snake eyes for the teams. One and two. Rangers down to Orioles. All right so here's how it shakes out.  Let's sort by column B by team and we're going to pause the video. When we come back, we're going to see if there's any trades and then we'll have the break and while the trade windows open, I'll be setting up the boxes on this table here. So we'll be right back, stick around. All right, welcome back everybody. There was a deal done between Barry Roberts and TJ. So TJ is out of the Rangers spot and into the Cleveland Guardians spot. We'll put a T next to there for trade and Barry you're now out of the Guardians spot and into the Rangers spot. All right, now with the trade window closed, we can print and rip. All right, so we've got a lot of boxes to work through here. So good luck everybody. Oh, and here's the Tom Brady baseball right here. We're going to re-randomize everybody's names on there and the name on top. We'll get the Brady ball. We'll do the reveal of that at the end when we give it away. So big thanks everybody who ended up getting into this mixer. If you thought this was a good deal, we've got 26 boxes. There's actually 27 boxes. It worked out pretty nice, I think, for everybody. So there you go. Final printout, hot off the presses. Let's keep this next to me over here. So we're going to work through the base heavy stuff first and then we'll work our way towards the back where we'll have like the sort of one pack stuff towards the end. So let's get this kind of bulky and older box out of the way first. 2011 Bowman Platinum. Look for autograph cards of Bryce Harper. Good luck. We've got Freddie Freeman on the cover as well. So this break is going to be a minute or two. A lot of minutes or two. So kick back, relax, keep us on one screen, keep the basketball game on the other screen or a baseball game to see what's going on. We've got the Massoon actually was not keeping track of the... What happened in that Bulls Bucks game? I think they took care of business. Ended up being a pretty low scoring game. Bucks beat the Bulls 93 to 86 after they got off to a pretty hot start. Miami beat the Hawks earlier today, 115 to 91. And Phoenix is up 39, 21 in the second quarter, middle of the second quarter. Should be a pretty comfortable series for the Suns. In baseball, the Tigers Royals game was postponed. Padres edge out the Braves 2-1 in San Diego. Mariners beat the Astros 7-2. Dodgers beat the Reds 9-1. Cubs beat the Rockies in Colorado 6-4. Angels in Texas beat the Rangers 8-3. Brewers edge out the Cardinals in the Milwaukee 6-5. In Chicago, Reyes beat the White Sox 9-3. In Miami, Marlins beat the Phillies 11-3. In Cleveland, Giants beat the Guardians 8-1.  Blue Jays edged out the A's 4-3 in Toronto. In Boston, Red Sox beat the Twins 8-1. Nationals fell to the Pirates in Pittsburgh. Pirates won 5-3. And the Orioles, I actually saw this game earlier today. Orioles scored five runs in the bottom of the eighth against the Yankees to win 5-0. All five runs in the eighth for the O's, so good game for them. All right, now let's see what we got here. There's Reyes edition of Longo. Astros version of Hunter Pence. And there's Caleb Cowart to 5-99 for the Angels. Just in interest of time, we're going to set those aside. We're going to have our shipping team sleeve and top load those. And there's Travis Darno. Blue Jays edition. Oh, did I fly past Freddie Freeman rookie? I wasn't even paying attention to that. Obviously all... What card shipping? I'm assuming vet commons don't ship in this. Yeah, no vet commons will ship, but of course all rookies will ship. Oh, I didn't pass one? Oh, you saw one I was stacking. I haven't seen it yet. Okay, I haven't seen it yet. Brandon Short. Oh, redemption. I don't know where this goes. You're due to receive an autograph prospects refractor. So this will be randomized. It's expired anyway, but I'll randomize it to somebody. There's a out of 5-99 Schaefer Hall for the Yankees. There's the Freddie Freeman rookie that TJ spotted. Sharp, good eye. Tim with the Braves gets the Freddie Freeman rookie card. I don't know what those are going for on the secondary market, but there you have it. RIP Tyler Skaggs. Then we got a jersey and autograph for the Braves. 42 out of 99 Christian Martinez. Tim with the Braves. It's a Chris Sale rookie. What's what's his stock like? That's White Sox edition that's gonna go to Justin. And we've got a Jordan Swaggerty. Cardinals auto going to Bennett. Isn't there a... Isn't there a Travis Swaggerty out there? Am I just making that up? I feel like Pirate's Prospect. I wonder if they're related. I think Davis Dan Herron. That's our first box. Here's 2021 Topps update series. It's like a jumbo box. And that's one autograph and two rally cards in each jumbo box. Box toppers. All right. Ooh, Suzuki hit his fourth home run today. CJ Krone has five. We're looking at MLB stats right now. Yeah, CJ Krone is tied for the Major League lead in homers with Vlad Guerrero Jr. They both have five. Albiz, Aeronado, Marcellus Zuna, Ceasuzuki, all have four. Pitilanto Brandon Belt, Byron Buxton, Tommy Edmund. There are a number of people. Mitch Hannigar, Lindor, Brandon Lau, Oscar Mercado, Otani, Profar. A lot of people have three. But yeah, CJ Krone. Five home runs, 10 RBIs. Is he the best player in baseball right now? After 37 at bats, he's tied with Vlad Guerrero Jr. with five home runs and 10 RBIs. They both have the almost the same amount of strikeouts. CJ Krone has one less than Vlad Jr. But Vlad Jr. has one more walk. They both have 11 hits. They both have a double each. CJ Krone has a triple. So right now, CJ Krone might be the best hitter in baseball right now. Although Wander has 16 hits already, but zero home runs. Only five RBIs. A lot of hits for Wander. He's hitting 381. Matt Olson's hitting 421. He's got 16 hits too. All right. Update series. Look for those hits. So obviously all these rookie cards will ship. That's an insert and number. So that'll ship. That's to 70. That'll ship because that's an insert as well. That's gonna ship because that's a rookie and an insert. I think you know the drill by now. That'll ship because that's an insert. So will that. Yeah, Rockies did start the season pretty well. There's six and three to start the season. Out of 2021, that is Sam Huff, rookie debut. 554 out of 2021. That'll be for the rangers. That's Barry Roberts in the rangers. Die cut for the O's. Yeah, they keep track of walks Rex. Juan Soto leads the lead with 12 bases on balls. 12 walks. Matt Olson has 11. Jesse Winker is 10. A few people have nine. Seiya Suzuki has nine. So he's tied with Gman Choi, Eduardo Escobar, Francisco Lindor. Josh Bell has eight walks. And I think that might be a variation which is why it's flipped around like that. Taylor Tramiel. That's for the M's. That's gonna go to Jesse and the Mariners. I think there's like Kalanick rookie cards here and whatnot. So those are something to look at. You get all the stuff in the mail. Yeah, Juan Soto definitely has to knock out an MVP at some point, right? I wonder if he may get dinged a little bit because, you know, because I don't know if Washington is gonna be super competitive. So that may cost him some votes. But hey, with the expanded playoffs, imagine if he leads that team to the playoffs. I mean, that'll help his case greatly. We were actually we were actually talking about that a little bit, Mike, when like some of the, especially some of the rookies that maybe weren't expected to be called up right away or something like that, like those update guys. I think what we were looking this up, Rex, the other night, I don't think we'll see them until like, at least for a number of months. There's Alec Minoa, 246 out of 499. Rookie card right there for the Blue Jays, Carl with the Bluebirds. He had a nice debut and maybe a start today? What did he do today? Yeah, Minoa took the win today. That's his second win of the season. Went six innings, two earned runs, two walks, six strikeouts. And here's Mike Trout. He's okay. He was hit by a pitch today. Right on the hand X-rays negative, but he's day to day. That's a piece of his jersey, right? That looks like some infield dirt there, which is pretty cool. Kenneth with the Angels. Yeah, were we saying Tops Crone? When was that? Like July? There's Ronald Acuna Jr. Nice. All-star game relic that is for Tim and the ATL. Yeah, it does say game use right for that trout, so it's got to be some infield dirt. It's a facsimile autograph. We've got a Kyle Isbell 2005 out of 2021. Nice bunt there. That's for the Royals. That'll be for Barry David. We've got a Barry Roberts and a Barry David. This is for BD. Next box. The auto was... There was no auto. No, there should be a proper auto. I think we got shorted in auto. The facsimile autograph wouldn't count. I think we have gotten shorted in auto. Could have been a small auto if someone else had noticed it. Let me know. I'll look through these again. Now the box toppers won't count towards the auto that's supposed to be in here. I'll look through those again a little bit later. But no, it says and. It says one autograph and two relic cards. I don't think... Oh yeah, but the box hoppers wouldn't count towards that autograph count though. But maybe we will get an autograph in here. We've got those tech cards. Onwards. I think this is gonna take much longer than the two hours that I said it was. I think it's gonna be three hours. Here is the Ray Corbin box topper. Here's 2022 heritage. Yeah, it is a weird start. Yeah, that mystery redemption. Let's look at some early pitching stats. Anyone doing anything interesting pitching wise? Carlos or don't. In just two starts already has 21 strikeouts. 12 innings, 21 strikeouts. Dylan Cease, 10 innings, 16 strikeouts. Look at this. Tyler Andrew Heene of all people for the Dodgers, 10.1 innings, 16 strikeouts. You think you have some CJ Crohn top circle? He's wondering if she dusts those off? Maybe. Probably before he turns into CJ Crohn. Pitchers, even a smaller sample size than hitters I want to say. A lot of a lot of starting pitchers have only made two starts I want to say. I don't think anybody's on his third start.  Everyone else has two. Michael saying these packs look like they should have a stick of gum in them. They used to. They got like a waxy gummy sort of look in here. A real one autograph or relic card. That one says or and it's a relic. Clubhouse collection Jose Boreos. Carl with the Blue Jays. I think we'll have to do randomizers for this at the at the end. There must be a variation, Jaren Duran. That'll be for Anthony and the Red Sox. Yeah, Mike's missing the the multiplayer rookie cards. They don't do those as often anymore, right? Alright, 2021. Top Spaceball Japan edition. We're looking for autograph cards. Not guaranteed. We're looking for them. Looking at so now we're I don't know if we quite have a full sample size. It's really still too early. We're only most teams are only like 10, 9, 10 games in, but since we've got a long break, we might as well look at the standings here. Toronto topping the AL East with a six and four record. Boston's five and four. Yankees and Reyes are five and five. And the Orioles, they won today, but they've improved to three and six. The White Sox are six and three in the AL Central. Cleveland has dropped three in a row. They're four and five. Detroit four and five. Kansas City three and five. And Minnesota three and six. The AL West, the Angels are top the West on a three game winning streak. Six four. Astros are five and four. A's are five and five. Mariners are five and five. And the Rangers are two and seven. Yeah, everyone seems really close. We only played nine, nine, ten games. I don't think we're really not gonna start to see separation. Probably until end of eight. Another couple of weeks, maybe probably middle of May, end of May. TJ saying this stuff is hot right now. The cherry blossom cards are going for a decent amount. I'm assuming those will jump out right at me when I see him. For the most part, I think the checklist is the same. They just pop a Japanese flag there and then you get maybe some different inserts, maybe some different parallels. For the most part, the checklist is pretty much the same. There's those cherry blossom cards are here. I got Casey Meyes on my fancy team and pretty bummed that he's on the aisle right now. 51 out of 99. Hopefully nothing too serious. I was hoping for a big season for him. We've got another. There's Trey Mancini 85 out of 99. Cherry blossom border. Garrett Cole Green 10 out of 75. Anyone watch the Apple TV broadcast of that Reds Dodgers game? A little rough. There's 6-0 Sanchez, 23 out of 50. There's Orlando Arcia 2 out of 25. All right. And now, same thing with the Japan edition. They did the same thing UK edition. These will have the Union Jack on these cards. Look for Autograph cards. So nothing guaranteed, but we're just looking for them. I know the answer, but I'll ask anyway. Any idea when fewer Phoenix are going on the hit site? What day does that come out? Generally speaking, it'll be a day or two before any news. If it's Wednesday, then probably Monday or Tuesday. If it's Friday, probably Wednesday or Thursday. Wednesday. So yeah, Monday or Tuesday. Chad, I'm sure it'll most likely be at the load up at the most inconvenient time for you. I'm sure that's what'll happen. Past are quite difficult. Quite stiff. Like the English, and they're stiff upper lips. Right, yeah. You just have to check the site all day every day. Just hammer that refresh button until Phoenix appears. And remember, Nick never tells me when he's loading up stuff. Because Nick's working on these. We all have weird hours because we work at night and stuff like that. So sometimes he'll do it early in the morning. Sometimes it'll be in the middle of the night, our time. Chad, like three in the morning, West Coast time. Who knows? All right, let's go. Tony Gonsolin. What if I did all this in a British accent? We could get annoying pretty quickly. The Catman. Tony Gonsolin likes cats. Wait, is this? So as you can see, all of these have the Union Jack on there. The Great Britain flag on there.  I guess we'll have to do something with the randomizer there. This is 2020. I've not seen Spencer yet. Anyone see Spencer? That's a Gavin Lux rookie card for the Dodgers. Carl, and this is a Luis Robert rookie card for the White Sox that's gonna go to Justin. Gavin Lux, still early in the season, but still starting off well. There's 65 out of 75, Jonathan Daza for the Rockies. That'll be for Josh. There's Trey Mantine, 95 out of 99. You can kind of see the Union Jack border right there. That'll be Carl and the O's. My tower remembers a show with Robert Ulrich called Spencer for hire. I don't remember that one. TJ remembers that show? I don't. Got a Max Muncie for the Dodgers. 99 out of 99. Late 80s, early 90s. Connick Collectible says, members as it being pretty mediocre. Is this guy? Oh, the Thames Tunnel. That's what he made. All right, 2016, Donnery's Optic Baseball. Could be some hot boxes in here. Connick Collectible saying, of course, everything on TV was mediocre back then. Not if you're wearing rose colored lenses. Connick Collectible, not if you're wearing those. Shows from the past I'd like to see get reboot. None. Zero. Let's get some original content out there. After I watched the Apple TV broadcast of the Reds Dodgers game on Jackie Robinson Day, which was a little rough, I discovered a show called Small Horses with Gary Oldman. Sort of an anti, it's sort of an anti James Bond show featuring a cast of MI5 outcasts, if you're into that sort of thing. A twist on the British spy drama. I should have been talking about that while I was opening up that UK box. That would have made a little more sense. The Apple TV broadcast, it was Steven Nelson was doing play by play, Katie Nolan and Hunter Pence were putting color on the game. I don't know much about Hunter Pence as a broadcaster, but Katie Nolan has done some really good stuff. And I like Steven Nelson on MLB Network, but just all of them together just didn't seem to work out. Three out of five. Luis Severino, rated rookie autograph. Nice. This is 2016, going back in time. This goes to the Yankees. That'll be for Dusty and the Bronx bombers and out of fives and under. Get the train whistle. All aboard the Big Head Express. Maybe they just need some more seasoning. The internet was crushing them though. 11 out of 50. Steven Metz for the Metz. Out of 2.99. Rated rookie Steven Piscotti. And we got a Back to the Future insert. Auto? Autograph. Back to the Future autograph. License plate. All right. There's Mark Grace Cubs. That'll be for Patrick K. Last Bot Mojo. Strikes again. 70% of the time Last Bot Mojo hits. 100% of the time. So they say. Corey Seeger rated rookie. You see the Angels walk Corey Seeger with bases loaded. There's a little wrinkle in it. I don't think it really worked out. There is Carl with the dodge. Yeah, it was pretty spot on, right? Rex, thanks. Yeah, Rex, the movie was on for a moment. I hope we don't get a copyright strike on this video. Rex, that'd be terrible. There's Brandon Drury was on the Dodgers now. This is Diamondbacks Edition, going to Joe. 2020, Topps Chrome Baseball. Rex, do you like how I made Mark Grace look like the license plate at the back of the DeLorean? That kind of content, you don't get anywhere. Any stories about Mark Grace? I do have a story about Mark Grace. He was probably widely considered to be one of the best conversational first basemen in baseball history. Probably next to guys like Joey Votto and Freddie Freeman, but Mark Grace is up there. I think later on, I think Mark Grace maybe struggled with alcohol a little bit. But yeah, generally known as one of the nicest guys on First Base. I remember a story where Mark Grace would often draw a tic-tac-toe square in the dirt, maybe behind the First Base bag for the other first basemen to play. That may be an unconfirmed story, but I feel like I read or heard that somewhere. Or maybe he wrote notes or something like that. I forget, something like that. I think we've worked through most of our base heaviest stuff, so we should be speeding up just a little bit. I've got a Diamondbacks Auto, that's Zach Gallin. Topped Chrome Baseball rookie autograph for Joe P. and his Diamondbacks. 10 out of 250. There's Ohtani and behind him is another cub, Robelle Garcia. Rookie Auto for Patrick and the Cubbies. Dustin May should be back in the middle of the season, hopefully. There's a Raphael Devers, blue wave to 75, for Anthony and the Red Sox. All right, let's get into some Allen and Ginter. What is this, a retail version of Allen and Ginter? What's the deal with this? This is Allen and Ginter X. Rex never heard of Mark Grace. Koi face, emoji. The one time we want you to tell Cub stories, Rex. You're not gonna tell us any Mark Grace stories? Rex is a big Cub fan. Tell us some Mark Grace stories, Rex. We got a long break. Got a long break to go. Slump Buster Mark Grace? Was there a Mark Grace Slump Buster story out there? I think I remember something like that. No, vet commons do not ship. Base heavy stuff, maybe some finest after this, maybe some Bowman Chrome after this. Yeah, I don't think it's going to. Maybe it will, I don't know. I doubt it though. Just like how, I mean this mini will ship. We'll put that in with our other non baseball stuff, like the UK cards, like the commons there aren't going to ship. I don't know what's in here. Like we have hits in here?  Here's this kid that just does Shirley Temple stuff, video reviews of non-alcoholic drinks. Aha, that's something right there. That's a 16 out of 30 and there's a mini stuck behind there. 16 out of 30 Brady Singer. Silver ink autograph for the Royals. Barry David with Kansas City. Philip says I need something good. We haven't even gotten to the good stuff yet. So we still have a ways to go. So fingers crossed everybody. Here's what we're going to do. There'll be a, there'll be one list that'll just be for the wax party and then there'll be another list where the name on top, so where the next list will be the Brady ball name on top. Second name will get non-baseball stuff. That'll be, I don't think we're going to run into it. We might run into points in select. So those non-baseball cards will be the stuff in that Ginter and the, and those UK inserts. Alright, let's, let's get this going. Rex has a trivia question for us. What college did Mark Grace play for and what team did he make his MLB debut against? I have no clue on either. I say he went to Arizona State University and made his debut against the Cardinals. That's my guess. We prefer not googling it. What fun would that be? Logan says Stanford and then Yankees. The Brian Hayes rookie card. There's Alexander Mohica to 150. Blue Chrome also for Pittsburgh. Steve M. Bowman first. Gabriel Rodriguez for Cleveland. There's a Wilman Diaz. Black and white speckle for, for the Dodgers. That's going to go to Carl. And then Andrew Vaughn. Magenta 299 for the White Sox. That'll be for Justin. Oh, TJ got the college. San Diego State. I was only a state away. I was close. Yeah, I knew it was somewhere on the West Coast or West-ish. So anyone know where, who Mark Grace made his debut with? Are these going to be obnoxious? I think they are. I don't think we're going to have teams on here. There's Jackson Job. Let's get this out of the way for a 7 out of 30. Is there a checklist for this? I think you're right. Jackson Job does sound familiar for Detroit. Well, there's no checklist on groupbreakchecklist.com. So we're going to go with, we're going to go with the team that they are currently on. I think these are all current players. So Jackson Job is indeed a tiger. Alright, we got Samuel Muñoz. The tigers Jeremy are with that one. I don't know where Samuel Muñoz goes. That's 10 out of 20. And I think he's a Dodger. He signed in January of this year. I think this guy's also a Dodger. Maddox Bruns. Yeah, he's a Dodger. Almost a top 12 prospect. Top 10 prospect. He's 12, according to MLB.com. 6 out of 30. What about Aaron Zavila? Zavala. Aaron Zavala is a third baseman in the Rangers organization. So that'll be for Barry Roberts, who's drawing first blood in that Rangers Cleveland trade. 20 out of 20. What about Robert Gasser? Throwing gas. Robert Gasser is currently with San Diego. That is not numbered? Not numbered, but a red parallel right there. And last but not least, Reginald Presciato. I don't know if we have to do one or two, but if it says last filler, then that'll be the last one. But if it doesn't say anything like the last filler or this fills the break or something like that, then you can assume that there are multiple. 3 out of 10 on that one. Cubs. Let's get this leaf going. Yeah, TJ was just nailing him. He was just like, I sorted some 2020 draft paper today. Alright, this is 2021 flash baseball. I think there is a checklist for this. So we're going to go by the team they're currently on. There's no checklist. Christian Hernandez, I think you're right. This is a cub. Jaden Hill up next, if someone wants to look that up while I top load this. Christian Hernandez, Patrick Katzyk. Last fought Mojo Cubbies. And that's 37 out of 75. No one looked up Jaden Hill. Jaden Hill is a pitcher in the Rockies organization. He's out of LSU 98 out of 99 Colorado. That's going to be for Josh. You got Ian Lewis Jr. Maybe a Tampa Bay Ray. No, Marlins. That'll be for Richard with the Marlins. Jose Ramos looks like a Dodger right with that with that jersey. Yes, that'll be for Carl and my Dodgers. Wilman Diaz. I definitely know he's a Dodger. Tell by the uniform right here. Oh, look at this. And a Bobby Whit Jr. Nice. That's actually a pretty nice box. Wilman Diaz is a coveted prospect. Another one for Carl and the Dodgers. And Bobby Whit Jr. for the Royals. Nice. And that's for Kansas City. That's going to go to Barry David and the Royals. 70 out of 75. Also that mystery redemption will go in the fourth spot right there. That's expired. So we may as well put it on the bottom. We're close to the bottom. All right. Let's keep working. We're almost like we are getting towards the good stuff here. Here's select and less base heavy stuff as well. So each box should be a little bit more quick than the last as we keep pushing here. And then I think from here we'll do some 2020 Bowman Chrome then some Finest. All right. Good luck, everybody. There's Mike Yastremski, Lion Green, 47 out of 99 for the Giants. That'll be for Cody in San Francisco. We've got Trevor Rodgers, 240 out of 199. Rookie Jersey and Autograph. I think over the weekend I learned that Trevor Rodgers has a twin brother, Taylor Rodgers. Right. Maybe not. No, his cousin's Cody Ross. Wait, who's that? Who's that submarine pitcher on the Giants? He has a twin brother and his brother, this one goes to Richard in Miami. Not Trevor Rodgers and I'm thinking of someone else. There's a relief pitcher, submarine style relief pitcher on the Giants whose brother, twin brother, is on the Padres now after a recent trade. There's Tyler Stevenson, big piece of his jersey for the red that's going to go to Dusty. Someone will tell me in the chat, I hope. But I think they squared off against each other or at least play in the same game together. Nice Hebrew Ruiz. Jersey and Autograph. Still Dodgers edition here. I'm making some regular starts in Washington. This will go to Carl and the Dodgers and the big Dodgers pitching prospects. 221 out of 299. We've got Joey Bart, Giants. Cody has my rivals. Rafael Marchand to 199 for the Phillies. Jared Aliva, blue to 149 for the Pirates. That'll be for Steve M. Right. 2020, Bowman Crome. Two chrome autographs per Master Box. Each mini box has an auto. 75. Suns 85. That kind of bit me. Another trivia question. What athlete was drafted by four different teams in three different sports? Dave Winfield. Winfield. Corey Kluber to 499. Refractor. And Luis Matos. 138 out of 499. Is your autograph? That's for the Giants. That's going to be for Cody Russell. For me, maybe not too easy for others. We've got another giant here, Sean Gelly. 21 out of 99. Another one for the Giants. My rivals. For you. That reminds me of Too Easy Honest. In the Batman movie with Bane, the guy at the CIA agent in the beginning of the movie.  For you. That's what Bane says. Alejandro Kirk to 99. And we've got a Marcano. A Tucapita Marcano. Bowman first autograph for the Padres Phillip on the board with the Friars. Steven Strasberg to 99. 2021. Top's finest baseball. Two autographs in each mini box. And then I think we're going to work our way down that stack right there. We're going to do that gold label box, tier one, some archives and clearlies, then some sapphires and then we'll work our way down this column right here, which will be the choice box, a couple of Inceptions, chrome black and hip parade. Onward. Good luck. And we got a boba shed to one night. I thought that was going to be autographed for a second. That's going to go to Carl in the Blue Jays 45 out of 199 boba shed. And Chris Boobich is your rookie autograph for the Royals. Barry David. Kanta Maeda. Might be a very ancient. I'll set that in the other pile. Rookie Betts to 250. That is for Carl and the Dodgers. We got a Kent Herbeck. Remember him? Kent Herbeck autograph. That's for Scott and the Twins. Luis Petino to 300. Eudarovish and Yoann Makata. That black gold card is a case hit. This, this Legacy's card right here. Chad is saying is a case hit. All right. So that'll go to the White Sox. That'll be for Justin. Right. What about some gold label? 2021 gold label. Nice frame autograph inside. Frame right there. Yeah. Top's Finest is a classic. I do enjoy it. All right. Some gold label. There's a boba shed to 99 and the frame. This is Andrew Bogart and Narendi Arzirania up front. And the gold frame auto is Jermyn Mercedes. Rookie auto for the White Sox. That's going to be for Justin. Tier one, which was that 27th box that was not on the list, but it was in the picture. The picture for the mixer had 27 boxes. The list, the description only had 26 boxes. This was the one that was missing. So we'll use this blank card right here. Do the relic first. And that's Xander Bogart's. Nice three color dual relic for Boston. That'll be for Anthony. We've got CC Sabathia 63 out of 125. That's Cleveland edition. And that is for TJ and the Guardians. Indians back when CC played. Updated now. And back here is John Croft 17 out of 25 for the Fightin' Fills. That's going to be for Jimmy and the Phillies. All right, what about some 2017 archive signature series, active player edition? Joe Pannick, 36 out of 99 for the Giants. Cody Russell with the Giants. Let's go to 2021 archive signature series, active player edition. And it's Kenta Maeda, 74 out of 99. Nice autograph for the Dodgers. That's going to be for Carl and the Dodgers. Now, similar sort of thing. Clearly authentic. One encased auto box. Got a rookie and it's Daniel Ponce de Leon. Got that cool acetate look right there for the Cardinals. That's going to be for Bennett. We've got a Trent Grisham rookie autograph. Seven out of 25. Brewers. That'll be for Dusty and the Brew Crew. Let's maybe some Sapphire 2021. Tops Chrome, Baseball, Sapphire, Update Series, Sapphire, Sapphire Update Series. It's Tops Chrome, Baseball, Update Series, Sapphire Edition. Or Sapphire Edition Upstates. All right, and we've got Trevor Rogers, another one for Richard and the Marlins. Got some orange. It's Casey Meyes. Nice little color match there with the Detroit logo. That's going to be for Jeremy. Hopefully gets off the aisle soon. Hopefully seven out of 25. And that's a great season. I'm counting on him. Me and my fancy team has been counting on him for a breakout year. Let's keep the Sapphire thing 2021 Bowman Draft, Baseball, Sapphire Edition. A Tops.com exclusive. We're about at the hour 30 mark. Maybe my two hour prediction was correct. Initially at the beginning of the break, I was like, this is going to be a three hour break. I think I got it at two hours. Probably another, probably less than 30 minutes. Maybe I was a little ahead of schedule. Even better. All right, good luck everybody. Final handful of boxes coming up. And we got Matt McCulsky, 23 out of 25. It's Cody and my rivals, the Giants. We've got an Andrew Abbott, five out of 99 for the Reds. That's going to go to Dusty. We've got some optic choice. Three autographs in here. You know what? No, I think we looked this up. I don't think Casey Meyes is related to Johnny Meyes. There's different snakeskins. There's Ryan Jeffers to 110. Nice show, Tani for the Angels. That's for Kenneth. That's to 88. Bryce Harper to 110. Gleiber Day and Alec Minoa, both out of 45. There's a six to Sanchez, Rated Rookie Hollow. We'll do a recap at the end here too. And the three autos behind Kersh. First one is Tanner Hawk, Rated Rookie autograph for the Red Sox, Anthony. 63 out of 99. Second auto is Tucker Davidson. Tanner and Tucker. Blue Mojo for Tucker Davidson, ATL Tim. With the Braves, that's 89 out of 99. And then we've got a Barry Larkin. Nice. Retro Rated Rookie autograph for the Reds. Dusty and the Red Legs. I like that vibe there. Two out of five. Train whistle. Dusty. All aboard the Big Head Express. All right, we've got 2021 Bowman inception. We've got two autographs. Are there two autographs in here? There are two autos. Popped one early here. Pop both of them early. There's a third auto here though. Bonus auto, ladies and gentlemen. All right. Kind of all over the place here. There's a maximum cost of the 99. So your first autograph is Deshaun Knowles, 14 out of 99. That's a primordial prospect for the Angels. There's Kenneth. He's in the primordial suit. Hopefully he evolves into a major leaguer. If you believe in that sort of thing, evolution. There's for the Indians, Angel Martinez, 457 out of 600. That's for TJ and the Cleveland Guardians. And here's Rykelvin, DeCastro, 12 out of 50. Also knee deep in the primordial, waist deep in the primordial suit. And that is for Toronto. That's gonna go to Carl. Primordial prospect. All right, 2021 tops inception. Baseball. All right, behind Jordan is Dylan Cease. Chicago White Sox autograph. He's having a nice season, I think. I thought we looked up those stats. That's Justin and the White Sox. All right, let's do the chrome black first. And there's Garrett Cole, 54 out of 99. And the encased card is gonna be, it's a Yankee and it's Davy Garcia, rookie autograph for the Yankees Dusty with the Bronx Bombers. All right, 2022 hip-rated baseball, limited edition, series eight. Really nice hit in here. Let's see who it's gonna be. All right, it's a thicker card. Ooh, this is, I think this is a nice one. If this is who I think it is, it is. Five-star baseball, Cabrine Hayes rookie auto. Steve M with the Pirates. Nice, there you go. And there you go, gang. All right, we got a number of randomizers to do here before I do a recap. So we're gonna have two different lists. The first list will be the Wax Party randomizer. Name on top gets Wax Party spot. Completely separate list will be the Brady Ball. The next name down will get the non-baseball card. There were no points. So the third name gets the, that mystery, I know it's expired, but we'll still send it off to you anyway. Maybe you can twist up Nene's arm to get you to do, get them to do something. There were also these three cards right here. Actually, it's just a triple, right? This will be one, two, three. Just like one, two, three. There's some windows here. One, two, three, four. So we'll use one dice roll for all four lists. So let's flip back to random.org. First list will be that left-right. That'll apply to any other left-right cards that there may be. The next card with the three players will just go position one, position two, and position three. Everyone's got a shot at the Wax Party spot. So that'll be one list right there. That's the first list. First full list, Wax Party, and second full list will be for the Brady Ball. So we're pretty much going, I'm going to flip back again. We're pretty much going in this order right here. The left-right randomizer, the one, two, three randomizer, Wax Party randomizer, and then the fourth and final list will be for the Brady Ball right there, which I will reveal. I know you saw the picture, but I'll reveal it live. One dice roll for all four lists, and that's going to be five and a one six times. Good luck everybody. Left-right first, one, two, three, four, five, and a one. Six and final time. Those two player cards will go to the right side. Five and a one six times. One, two, three, four, five, and a one. Six and final time. That'll go to position one, spot one. So that spot right there. All right, Wax Party spot. After six, good luck. One, two, three, four, five, and fingers crossed a one. Six and final time. Name on top is going to be first off Anthony, sorry. Very close. No cigar. We'll get him next time. But happy times for Carl. There you go. With the spot that you won in the filler, after six times you are in the Wax Party. So we keep track of it on the break schedule. We already did one earlier today. There is your name in there for the 27 box baseball mixer today on a Sunday, the 14th. Five and a one six times. Once again, name on top gets the autograph, the Tom Brady autograph baseball. The non-baseball cards that popped out of Top's Chrome UK and Ginter I think. And then that weird mystery redemption from 2011 Bowman Platinum baseball. But name on top basically is where you want to be. After six, the Brady Ball. Five and a one. Good luck. One, two, three, four, five and a one. Good luck everybody. Six and final time. So from spot four on down, nothing. Not this time Carl. Sorry. But thanks to you and everybody for giving this a go. Top three. Well, top third position gets, I mean, maybe it's not that great as well Carl. That weird mystery redemption. Second spot non-baseball cards. That's all right. Let's get something Bennett paid. We'll send some stuff to you. The name on top is really happy because that's going to be a Brady Ball. Then that's Dusty. I don't think I call Dusty's name very often in the break, but the Tom Brady Ball going your way. Congrats. Tom Brady autograph baseball. There it is. Nice. No inscription, but a nice autograph there if we take it out. A little slider with this one. There's the fanatic sticker right there. We have an MLB hologram logo. No, we don't, but the fanatic sticker. There you have it. It also has a little hologram verification card in there as well. There you go. Carl congrats to, or Dusty that is congrats to you. Carl got the wax party. Congrats to him on that. That's from the mixer from the 17th. And there you go ladies and gentlemen. I'm Joe for jaskyscasebreaks.com. I appreciate everybody getting into this mixer. It was a lot of fun. Gave away a lot of stuff. Here's a quick recap. Some pretty nice stuff pulled out of here as well. The Keebert Ruiz jersey in auto. Trevor Rogers. Bobby Whit Jr. That was nice. So is that Wilman Diaz. That leaf flash box turned out to be pretty nice. And then here's the pro set. Remember we tagged all those in their cities back there. There's the singer mini autograph out of Ginter X. Mark Grace, Severino from 2016. And there you go ladies. What a nice break. Thanks very much for getting into that 27 box grand slam at baseball mixer. The Brady ball was awesome. Pulled some real solid stuff out of the break itself. Wolfpack. Yeah. Not your best break Wolfpack saying but it was still fun.  Join in next time. We'll try to make it up to you next time on jaskyscasebreaks.com. I'm Joe. I'll see you next time for the next one. Bye bye.


Good afternoon everybody. Thank you very much for joining us today We would hereby like to start and open the public hearing on the draft ECB Guidance to banks on leverage transactions We have here on the panel and Patrick amy. He's the deputy director general of Microprudential supervision one and with him four supervisors in his team John Baptiste Jill Jan Eric folk Ivan Stylianoff and Georg Paula We would first and Patrick amy will give a short presentation And afterward you are very much invited to ask them questions When you ask a question, please state your name and your affiliation and I would ask you in the first round at least to limit your questions to two as the president does with his press conference Thank you very much. Thank you very much. Welcome to all of you We are going to present a little bit of slides to to introduce the topic and of course then There after we are very happy to to get questions and explain a little bit the rationale for the drive guidance And I will share that presentation with colleagues Just to make it a bit more lively Let's start with Maybe directly with slide three with the timeline of the public consultation just to to give a sense of timing and the next steps So as you know, the public consultation was long end of November last year Today is the public hearing and we will Close the consultation period at the end of last week We expect to receive a number of comments. We will analyze those comments and we Hope to be able to finalize the guidance by the end of the first half 2016 2017 sorry on the On the background and why we sought it important to come up with a draft guidance on leverage finance, I think Just to remind we started in 2015 Sematic review on leverage finance. We sought based on An extra evidence at that time that the market was developing very very fast with some trends that we wanted to investigate Further so we started that semantic review Which was conducted in several phases I think it's important to note that already we issued to individual banks that were Is it better? Yeah, that were subject to the Sematic review we issued individual recommendations with with specific timelines to address Specific concerns or comments we had for each of those banks subject to the Sematic review So the draft guidance is complementing Individual actions that are already being taken and being followed up in GSTs Maybe just to concentrate on some of the main findings of our survey and Sematic review we had Very marked increase in volumes on transactions since 2012 With some features that you all know of The trend towards covenant light transactions and since we did the review it did not This trend did not reverse on the contrary and also rather interesting features in 2014 The volumes of new transactions were represented for more than a third of the new transactions with with refinancing of existing transactions with higher leverage So based on Those different trends that we noted across the banks We had as I mentioned individual follow-up and we thought it would be important to come up with guidance To further steer more consistently the market also having in mind that We are not the the first in doing this. We had Prior to our Interest in the subject we had as you know Guidance being published in the US and so US banks are already subject to guidance That is very similar in intent and content to what we are trying to achieve here I think it's important to mention that what we want to contribute to is Smooth and stable financing of the economy over time This guidance is not about restricting access to credits to corporates And I want to make that very very clear Maybe if we move to the next slide So just to remind that the guidance is expressing supervisory expectations So this means that it is a non binding instrument. It is not a regulation per se however Deviations from the content of the guidance will be of course Analyze by the GSTs going forward and by the onsite inspections and we will expect that banks explain material deviations from the guidance The applicability of the guidance it will be applied to all institutions supervised by the ECB and however we of course will Expect that banks apply proportionality in applying these guidance and we will ourselves apply Proportionality meaning that banks that have very few activity in terms of leverage financing, of course will not be Expected to apply the guidance in in the full level of detail in terms of scope We want to apply it to a consistently defined leverage transaction universe And however some of the expectations in the guidance we feel might be relevant for all the types of Activities or operations like syndication activities for instance more broadly the guidance itself addresses three key dimensions as I mentioned a Definition consistent definition. The second is considerations pertaining to underwriting and syndication And the third is pertaining to risk monitoring and reporting an IT tools the guidance as I mentioned as well is closely aligned with the US guidance and and other initiatives And with the ECB draft guidance on non-performing exposures We have some cases of deviation from the US guidance that we will Present a little bit further in the slides and I'm sure we will receive questions on those as well during this public hearing Maybe I will give the floor to to Jean-Baptiste to start presenting a little bit more in detail the definition part of the guidance So good afternoon everyone so thank you Patrick as you mentioned we we've run a thematic review on 2015 and one of the findings was pertaining to the to the definition of leverage transaction and the finding we had is that Between banks the definition of a leverage transaction was very different and sometimes also within banks They have some multiple and often competing Definition of leverage transaction. That's why we come up with a proposal and a preliminary definition of leverage transaction that I'm going to Go through quickly in the slides so The definition works pretty simply you've got elements of inclusions and elements of exclusion and the first and main elements of inclusion is a leverage test where we actually Look at the in depth in depth level of one borrower and we assume that when is that is more than four times It's operating profit this corporate borrower is leverage and should be captured by our definition and this four-time metric is something that is pretty common as a market practice and also a line with The ratio the ratio that was in the US guidance When it comes to the bottom part of the slide so the exclusion so we exclude We have three main exclusions From the scope of leverage transactions. So the one exclusion is related to the counterparty type so we don't want to capture loans to Private individuals. We don't want to capture loan to public sector entities The purpose of the guidance is not to have financial institution loan isa Then we've got a second type of exclusion that is a kind of materiality threshold. So very small transaction Small being defined as below five million euro. I excluded from the scope of exposure that we want to capture and Finally, we Exclude also type of structure credit activities Meaning that what we want to focus in the guidance is rather on cash flow base lending and we exclude Activities that are mostly asset base or asset base lending is excluded commercial relay state is is excluded As you will see on the right part of the slide, we've got some Expectation in terms of what we want to see in the in the as a feedback from From every interested stakeholder in this public consultation and what we are very keen on having is to have a kind of Quantification of the exposure that would be captured by the guidance So any type of quantitative information that you are able to provide us will be very helpful for us to size More precisely even more the effects of the definition And when it comes to exclusions You might have some question of the comprehensiveness of these exclusions and on that particular point We also welcome Detail comments on why sometimes you will deem some other exclusion Justify so Moving now to the to the next slide. I will get a bit more in detail with the leverage test So it's it's it's a very basic ratio that compares the level of debt with the The a bidder The a bidder as per the current version of the guidance is based on an unadjusted metric So I'm sure that we will get more in details concerning this and adjusted a bidder But something that is important to say at this stage is that It doesn't mean that as part of the covenant negotiation that you have with a borrower You cannot use an adjusted a bidder. It just means that for the purpose of reporting and for Very basic consistency reason we seeing at this stage that an unadjusted a bidder will be the more Simple the simplest way to have consistency in the in the bank that we are monitoring When it comes to the second part of the ratio the total debt so we We wanted to make clear that we are Really speaking of total debt so we don't At this point in time net the cash of one borrower For this calculation in that we look at the at the commitment rather than only at the drawn part of the debt So whenever there is undrawn line we do expect at this stage that this and red line undrawn lines are Including in the in the calculation, so I won't get into more details at this stage If you're free to to ask question after would after the Presentation and you will see again on the right side the type of information that we are keen on receiving So you might have some IT constraints when Receiving and using a bidder. Please let us know as part of the public consultation and we have also one open question On the treatment of incremental debt When it comes to the debt calculation, so please feel free to give your thoughts on that and use Release this public consultation as a forum for discussion So I give the floor to Ivan on the other aspect of the guidance Yes, thanks a lot. Good afternoon from me, too So on top of the definitional aspects the guidance also raises expectations with regard to risk management across Several points of attention which we identified as part of a thematic review So here in any case given the results of the review We are confident that some of these aspects are already in place in some of the banks But we have not seen the consistency which we would like to and we have not seen them as common practice and that's why we have Decided or we saw the need to outline them a bit more in detail in these guidance So here I would like also to use the chance to ask you to please flak as part of your comments in the public consultation where whether any of the outlined Expectations would lead to material changes in the current internal approach to risk management and The more specific you are in your comments the better obviously So now going through the expectations First and foremost we are in the view that that excessive leverage levels have proven to be risky and raise Supervisor concerns across most industries over the cycle So in this context while we might not have necessarily seen Evidence of excessive high leverage in the market right now We would expect banks to have detailed risk apatite statements which outline acceptable Leverage levels which would be in line with the overall risk apatite of the institution. So Additionally on the more quantitative side the thematic review identified a few cases of weak Underwriting quality especially linked to Covenant structures Which also find their way in the industry more and more as we as we have seen but also linked to the assessment of syndication and also refinancing risk and then here we consider it appropriate to outline an expectation that deals with the amount of leverage and the said essential the expectation is that Bank consider the banks consider financing a borrower with a leverage which exceeds six times Depth to a bid that only if this is approved and reviewed by by senior management as well So here we have we have essentially Received some questions around this expectation. So maybe it makes sense to elaborate just a little bit further at this stage It must be clear here Also is about Rick said in the beginning that we're not setting a non-passed threshold or or any limit Which says the deals above six times should not be underwritten instead. We are setting an expectation for more stringent risk management and Deals with excessive leverage should essentially be reviewed and approved by senior management of the bank as well and Lastly this expectation applies to all forms of syndication, which means both to underwriting but also to club deals I would give the floor to Thanks even the next two items on page 9 will tackle Both aspects concerning failed syndications and secondly the repayment capacity expectations. We are lining in our guidance So let's start with failed syndications as part of the tomatic review We identified that in adverse market conditions the potential for banks to generate significant losses In on the written exposures is existent and is a potential risk At the same time we've identified that the risk function should be actively involved in the syndication process both in terms of monitoring and to limit and potential over-liens of a syndication function secondly and that's the third bullets you see on the left we Raising expectations in terms of senior management involvement in both the approval of a risk appetite and a strategy But also in terms of a of an overall monitoring framework underlying failed syndications The whole thing translates and that's what you see on the right into two broad Expectations one being a more quantitative sites and the other part being more on a qualitative risk management sites in terms of failed syndications the Current draft ACB guidance clearly outlines a what we identified as part of the tomatic review a best practice in terms of the number of days past Deal closure in which a transaction is to be classified as failed or hung We've identified that as being 90 day and that's the current threshold as stated in the guidance That's also aligned with the current threshold other supervisors have in particular the US Stated in their guidance the second part and that's the more qualitative risk management aspects of that of that particular Expectation center around the involvement of senior management within the process both in detailing a Clear district de-risking strategy and also detailing the procedures in place to manage distribution failures Which then again on the on the right side links in with the policies We expect to be in place in terms of the classification of Exposures in the pipeline or in excess in terms of a classification to regulatory banking in a regulatory trading book So in terms of key takeaways from that the risk function as we speak is expected to be more actively involved in the syndication monitoring of Underwriting on the second part and that's the bottom part you see on the repayment capacity What we've identified as part of the tomatic review has been and as Previous you hide it more liberal structures in terms of amortization profiles Which also and that's the second point you see have led to an implicit refinancing assumption in these structures The ability in these structures to serve as debt is in most case given Questioning the ability however of the borrower to ultimately pay the entire debt over a reasonable period of time We aim at addressing both points in our current draft of the ECB guidance We call it repayment capacity and we are expecting banks to have realistic assumptions both in their cashflow core forecast, but also in the Determining whether the borrower is able to within a reasonable time Dileverage to a sustainable level and that sustainable level as per current draft would be a deleveraging of 50% to 50% of total debt Within a reasonable time frame define as five to seven years again Aligning this supervisor expectations to those outlining within the US guidance I'll pass the floor to Georg to tackle the issues identified on page 10. So on page 10 first on the credit approval process where results of Sematic review actually indicated In over reliance on front office due diligence as well as heterogeneous standards with respect to sensitivity analysis and stress testing From this the guidance first of course Emphasizes the importance of strong involvement of the risk management in the credit approval process Which of course should be clearly defined in the banks policies and in addition the guidance emphasizes the importance of sensitivity analysis and stress testing being sufficiently conservative and capturing tail and market events as well as idiosyncratic events and Here at this point related to stress testing We also would highlight that stress testing is not only quite important When we talk about the credit approval process, but especially also when we talk about Underwriting pipeline and also for ongoing monitoring as you can see in the lower part of the slide Expectations in this respect would for example Comprise an in-depth review of assumptions made during the due diligence from a macroeconomic as again idiosyncratic perspective which should translate into severe but plausible stress scenarios and Which of course should result in a material impact on the portfolio and Finally the last point we have here on the slide Is what we also would like to highlight the expectations expressed on internal Impairment test triggers. It's important that when we talk here about internal impairment test triggers We are talking really about triggers triggering impairment tests and these triggers are not related to the Impairment test itself as criteria for impairment when in the end within the impairment test these impairment test triggers are Aligned with the EBA and ECB and PL guidance and the triggers which for example are outlined in the guidance are here Yeah breach of course of material financial covenants refinancing of a borrower at an increased leveraged or the case where the borrower's financial situation is actually worse than initially projected in the stress case during the due diligence This is the slide here and now I guess I can pass on to Thank you very much Georg So just to summarize I think what we're trying to achieve here is a consistent and proportionate Response to some of the features Exhibited in this market that we are concerned with In a way that compliments the the bank by bank follow-up that is being done with the teams at that moment and also consistent with previous Examples and particularly the US guidance. So was this I'm very happy to open the floor and take questions Thank you. Hi. My name is Sarah Schmidt. I'm working for the European Banking Federation and Together with the National Banking Association's and the banks we've looked at this guidance So thank you very much for giving us the opportunity to participate here today And I think there are there are two Comments I'd like to to make today Which both refer to the definition the first one would be on SMEs Because of the very low commitment threshold of five million euros We believe that the guidance will include many SMEs IE many clients of commercial and retail banking networks and not necessarily clients of the leveraged finance market So and because of the fact that many of the small companies may find it difficult to provide the data and the information Requested we think they may find it more difficult to get bank finance So I was just wondering why the ECB does not consider further conditions to exclude SMEs in particular via let's say a higher threshold or sales figures or a purpose test or something like that and My second comment refers to level playing field As the guidance only applies to significant institutions. It excludes Many players in the leveraged finance market such as shadow banks for example So we see a risk here that unregulated players may grow as a result which may actually to more systemic risk Okay. Thank you very much On the on the first question So which is the question of inclusion of SMEs basically in the scope of the guidance and I think basically The answer would be would be twofold We are Sort about a full exclusion of SMEs per se from the scope of the guidance but we thought that It's very much dependent on on what you define as a SME and we thought that it will be probably better to address this Through a threshold exclusion and I understand that your comment is that the threshold exclusion is too low And could even incorporate retail clients you mentioned now I would be happy to be a retail client with more than five million financing but I Suppose that indeed we we We can very much tech that comment on board and reflect upon it when finalizing the guidance and indeed I think This is this is something we can think about We have been approaching banks on an informal basis and best effort basis to try and size up What will be the impact on the current definition as proposed in the draft guidance? in On their books based on their books and so far we did not see a lot of movement in what we receive compared to what was Already in force in the banks own definitions We have a little bit of movement and this is this is anticipated and desired That's we have a number of cases where it doesn't move that much that being said This is something we'll take on board for finalizing the guidance And on the on the second aspect on the level playing field. I think there is different Elements to the to the question and to the answer The guidance indeed formally applies to banks that are directly supervised by DCB It doesn't mean of course that It will be without inference on bank that are in their indirect supervision By DCB so the so-called less significant institutions in our dragon That remains supervised by the national competent authorities As you know, we have also a role in trying to foster a consistent Subvise re practices in that field and we will of course Incorporate as we do for all documents that are published in by the by the SSM. We will of course strive to incorporate the content of the finalized guidance on leverage finance into The the role the realm of of less significant institution supervision That being said I would expect in that field a lot of proportionality because obviously most of those institutions would not be big players in the field of leverage finance The second aspect of your question is of course Vis-a-vis non banks and I think this is something that we are confronted with in whatever we do as banks advisors When we talk about about financing and financial markets We have non banks and non non banking actors in those markets. That's a fact of life We have to live with it. It doesn't mean that we are not preoccupied with what Banks are doing and this is what we want to influence primarily That's my my first answer the second answer of course is that we are not deprived from ways of Signaling our concerns when we would have broader concerns We have a number of foreign publications for that and we will as we do for The the seam of the so-called shadow banking in general We will of course not hesitate to signal trends that we would find concerning for the non banks as well in future The third aspect is that we have noted that so far The non bank actors are not so active in syndication and syndication is is one of course big part of the draft guidance and we believe that through our Expectations on syndication practices. We will have a broader influence on the market and Finally when non banks would take Significantly more risk than banks in a particular market After all, maybe this is not such a bad thing for the continuing and smooth financing of this segment Across the cycle Yes, thank you very much also for your presentation. My name is Lena stock. I'm from fish ratings I have a question on the definition of total debt. Would that include Instruments which are such as for example vendor loan shareholder loan pick notes Could you provide maybe more detail is how you define that? Thank you? so so far the definition of Of total net has been very taken from a high-level perspective in the guidance. So We we speak about the depth in general without presizing exactly what type of structure we should we should have in so I Mean that's that's a very interesting comment I'm not able to to get a lot of detail at this stage and give a preliminary answer Or I will treat specifically big notes or shareholders. So if you can maybe give that question as part of the of the public consultation feelings and giving for example you as as a Rating agency, how do you treat these? This instrument as part of your debt calculation would be very helpful So we know that we have certain challenges for example in terms of that calculation that could be the treatment of uncapped Incremental debt But this question is also totally valid So and and we would be keen on receiving especially from from IT that agencies that do that on a ongoing basis your Current treatment, but so far we have not strong view and deciding on exactly what how we should be We have any to refrain from being overly prescriptive on that field With a leave it's important that we see a little bit the guidance developing and how and see how it is implemented in practice Before maybe refining from this time The the field of application the guidance when we will have There is specific questions of implementation or application. I think that's probably the safe way to go at this point in time That being said the question is is very valid Any other questions there is Hi there, my name is max danzman from fresh trees because derringer and What I haven't really understood so far when I read the guidance is and how would you deal with? typical acquisition finances in which There is a bitco and a target group company that has the everyday DA Quite well and wouldn't cause the leverage threshold to be Triggered and the bitco doesn't have any leverage at all with the whole group be subject to the guidance or do you have to make sure that the borrower that actually Utilizes the loan has The ebt a or can you just because it is actually Triggered on a consolidated basis or looked at in a consolidated basis Just use the loan or utilize the loan wherever it fits the best and you don't have to Worry about ebt a thresholds and stuff like that So currently the I understand the question on the at which level do we calculate the debt to a bid that trigger? at least that's one part of your of your question and The standard we have is that you calculate The debts really that ratio at the at the consolidated level of the borrower So for example if you have a very wide group with very different sub entities and that each sub entities are Asking different banks to finance Every one of them will have a debt to a bid that threshold the one that we use is the one on the holding the one on the consolidated On the consolidated Parent then I also understand a second part of your question which pertains to whether we What happened in a situation where the borrower is leveraged but the SPV used for the transaction is not is this correct understanding? Mitry think that the first time that we have the the question very ultimately I think it makes more sense to look at the borrower and the ultimate Counterparties that benefits from from from the loan but that's a preliminary answer But I understand it makes sense to actually look at the ultimate borrower so but but in a syndicated loan with several obligors you have a Lot of different entities and would you look at each single loan? like if you have like In loan loan amounts of all together 200 million and there is one loan being drawn of four million for instance by one borrower and The rest of of of the entire loan would be Utilized by others with that one loan Because it is below the five million threshold not considered to be a leveraged loan and all the others are like how would that play together? Or would you say as long as there is one loan in in the whole? Financing syndicate financing the entire thing becomes a leverage transaction I will tackle this question a bit more globally So and rephrase it in a way is it possible that one borrower has at the same time some leverage transaction and not leverage transactions And this is possible. So let me give you a very hypothetical example, but you have a Corporate that do oil and gas Transaction and that has two credit lines for financing its its needs one traditional corporate lines and one boring base the boring base because it's excluded from the From the guidance will not be taken Will not be part of the exposure that we expect to be reported it's secure by a specific collateral and so on But the traditional corporate lines could be so at the same time it is from a theoretical perspective We don't expect that to happen that often Having a leverage transaction and a non leverage transaction as part of a more global leverage borrower's I Think that's it's a fair question and we will try to reflect that in the answer that we will Give to the comments received on that part Sergio Lugarese Italian Banking Association There is a third dimension of the issue of Leven playing field that which is Leven playing field in the US market you have mentioned the regulation of the US Authorities which inspires this regulation, but there are some differences I want to draw the attention to two to one and that that is the the definition of a bit da Which is an adjusted in in the draft guideline Whereas it is adjusted in the US so I would like to ask why and the same way why the definition of debt Is gross it does not exclude the the cash that can be quite relevant in Yeah, so on this is If we go back maybe to slide seven, this is two of the the points that we flag and we are particularly interested on receiving comments as part of the public consultation on the Unadjusted a bit just to give a little bit of rationale of why we went for an adjusted knowing that in did the US guidance Loads for using the adjusted I think the question we are having and we are very interested in getting views on this is how do we ensure? consistent treatment across banks and level playing field when we would use an Adjusted definition. Let me remind you that in the US There is something called a share national credit process where the US agencies put together a number of supervisors on a yearly basis and go on the line by line analysis of major transactions and In as part of that review. They are sometimes led to Make comments on the the level of a bidda as being reported to them by the banks That is one and on the level of credit quality. I understand on those transactions and We do not have at least for the time being in the SSM such a mechanism We will look at enforcement of the guidance and the application of the guidance Through a regular on-site inspections, but by definitions these are bank specific And it will not apply always at the same time for all banks in that are being subject to the guidance and The the teams the GSTs will follow up on the on the regular basis But probably not to the level of detail the going all the time on transaction by transaction basis So that led us to conclude that in the European context, it would be probably safer from the point of view of consistent treatment of banks and maybe also from the point of view of simplicity of reporting to use an adjusted a bidda and I would also mention maybe Quickly that We would be keen in understanding what is the general direction of adjustments I Would imagine that it tends to go to lower a bidda rather than a higher a bidda on average Which I can understand So we thought that all in all it would be more practical and and and more consistent again In the way we deal with banks to go for an adjusted I Want to make it clear again The the two metrics we use the four times and six times a bidda are exactly Equivalence to what is in the US guidance? So it's just the definition of course of adjusted non-adjusted and The sixth time is not does not mean prohibition It's it's important to note We just want to make sure that senior management and the highest level of credit analysis in banks is aware of the risks are being taken in that field and Are making sure that this is consistent with risk appetite Assets by the governance of the banks. This is what we want to make sure of so We we thought that it would not be such an issue We have since the launch of the public consultation We came to understanding that it was a little bit of a of a pressure point. So we are happy to receive Comments and suggestions in that respect again, it would be Very much appreciated to understand in which way you going for an adjusted a bidda would ensure consistent treatment of banks That's that's something that as you know is important to us we nevertheless understand that that may cause some some reporting difficulties if banks would have to report the same transaction to the US on an adjusted basis and and to us on on an Unadjusted basis. So that's something we are we are happy to to discuss and dig further in That's again to explain you the rationale and we will we are happy to receive reasoned comments in that in that respect the second one is the Total depth definition and the netting with cash our understanding is that the US definition is is using a non Nated metric But we are happy to be to be contradicted on this and if We receive specific comments in that respect. We will we will look at them I would just point to the fact that Calculated at in such calculating at in sanction an a bidda metric net of cash might be slightly Optimistic or misleading in times of crisis, of course because the cash may have Finished at that time. So maybe it makes more sense to calculate Gross of of cash Hello, Pascal and from a unique credit group So my question would be is the overarching aim of this guidance to identify and to monitor a high risk portfolio and If so should investment grades companies be excluded because per definition and by On the basis of other criteria. They are low risk So I understand your question on whether we could have on top of the definition a kind of rating trigger that would say investment grade or our out of the scope of leverage transaction and Yeah, non investment grade would still be part of the leverage transaction I mean exactly because for example, we have very often we have utilities Which is very very stable? Regulation is very very stable and they they always have a leverage of four times or above. So it's and they are Investment grade companies and of course other factors which can be taken into consideration rather than only leverage Okay, so so we treat the the question of utilities in the in the second part of my question but we made the choice at the beginning to not rely on on Rating trigger because it's also what it's also consistent with what the US does actually in their guidance and not relying on On a rating trigger to define what it's in what it's out That being said we would expect some kind of alignment between in most of the case Between the rating and the fact that the borrower is indebted more than four times So meaning that we would expect that the major share of what we capture is actually in on investment grade and when it comes to two specific example of Of you mentioned utilities, but it could be also stuff of exposure that deserve exclusion because because The rating or the collateral that they have have Have a better quality. We would be keen on receiving exactly a detailed reasoning on why This should be excluded. It is something different in terms of risk. Is this something? I'm sure that the rating agencies use some some criteria to make them investment grade despite of their high leverage. So We we happy to to to understand on on a very very granular details type of activity that you didn't needs to be excluded, but so far That we didn't use a rating trigger and also as part of our objective to be consistent with the US To reinforce that point. I think This is typically a case where we could have in introduce a rating trigger but we we thought to be consistent with the US definition precisely for in Yes, and with the previous question. So This is something we could consider Again, we're not sure it would be a big mover in terms of what would be captured as part of the division or not Probably with the exception of utilities And We are happy again to receive detailed reasoning or on on on which ground we could exclude utilities Maybe because the cash flow profile is dependent on a long-term contracts That have some sort of security just hinting at possible exclusion mechanism So, yeah Comments welcome on that part. Thank you very much Hey, my name is Nicholas library. I come from alberos and myself In your presentation you mentioned that all the Transaction that exceed the six six times that threshold should involve separate or specifics in your management involvement and In the draft guidance you said that those Those transactions should be exceptional and specifically Justified now my question would be do you have a specific expectation or some kind of a catalog that you would like to see us? Justifications for those exceptions or is this something that should develop over time? No, we we we don't have an ex ante catalog of expectations or The kind of box-ticking template that you should fill in on the transaction by transaction basis we believe that it's best left to the way banks organize their risk management and Again, what we want to achieve with this is making sure that there is a clear understanding of the type or and and Quantum of risk being taken in those specific transactions because we believe that they go into a territory that is Much riskier than than other tradition more traditional them that Transactions and that it is important that that there is full awareness at the highest level of credit approval in the banks how this is done and and how this is implemented we we think it better to leave it To the banks for the time being and of course over time We may see practices developing that we will consider to be best practices and we may complement all over time But I think for the time being it would not be completely reasonable to go with very Deep prescriptions on on that respect Of course depending on the volume is associated that That might and depending on the existing organization of banks that might Involve a number of steps and we believe it's it's it should be Fully embedded into the risk management structure of the banks rather than something a bit artificial That is being done just for the supervisor. That's Far from being the objective Hi, Alessandro Calaccio Goldman Sachs Two questions on something you mentioned earlier. I understand that the six times leverage Threshold is not intended to be a bright line for prohibiting transactions. What about the cash flow test? I mean, there's an expectation of minimum cash flow projections and second question is how do you Think about how do you think about? Borrowers who find themselves today in a situation where they have too much debt Relatives to their kept projected cash flows and how do you think about allowing these borrower access to credit? For refinancing or for maturity extension? Thank you. Thank you Yes, it's a very interesting question. So the the cash flow tests we don't see it as a bright line either we see it as a trigger for Considering whether there is a need to consider that a transaction should be impaired and should be considered as being in default But I'm not sure that that could be regarded as a bright line. So as a kind of automatic A recognition default recognition or automatic impairment trigger We are fully aware of course that there are other factors to consider it is Like projection of future cash flows. What are the trends in the business model of? of the corporate and What are the the trends in the economy? Economic environment, etc. So there are probably a number of Also elements to to take into account that being said of course that when we will have our on-site teams going to the banks I would expect that this is one of the first things They ask for when they would look at leverage finance and they will probably just ask for the number of transactions Being in that category and look at how banks have Assessed the need for default recognition or or impermanent But again, this will not be a bright line Hello, my name is Julian Cy from linklators Other guidelines supposed to only capture loans or also other dead instruments I think at some place within the guidelines you mentioned bonds as well The the answer is quite simple that's loans only We're not capturing high bonds or derivative as part of the scope that Use for defining what is in or what is out of the of the guidance. So it's loans It could be wearer's loans for example, but that's only loans at some point we do mention high bonds and it comes with with the fact that We say that the guidance is valid for loans, but some expectation could be useful for other type of Type of instruments so for example what we say on on syndication and In terms of due diligence could be true for for bonds as well. So the bonds are not mean to be captured as part of the of the transaction most of the Expectation applies only to loans And therefore should not be reporting as part of the exposure captured Not not either not either maybe one one one point to to complement We are of course aware that there might be over time substitution effects so we will because because we understand that Loans tend to exhibit more and more some of the characteristics of bonds and so This is something we will be Interested in monitoring going further. So we will also look at bonds issuances and investments by banks and warehousing pipelines etc and and see how Both markets are developing over time if there are no more questions we'd like to thank you very much for your interest for asking a lot of questions and Wish you a nice weekend. Thank you very much again. We are hoping that we get Contributions that will help us in finalizing the guidance. Thank you


So today I am going to discuss on analysis and design of two slab for a cantilever retaining wall. At the end of this session learners will be able to analyze and design the two slab of cantilever retaining wall. Introduction. The soil reaction varies linearly. So this is the soil reaction which varies linearly with more pressure on toe end. That means this is toe slab, this is stem slab, this is heel slab of a cantilever retaining wall. So at the end of toe slab you find maximum pressure and at the end of heel slab you find minimum pressure. So this is due to earth pressure on stem slab, so which is this is figure one. In figure one we have shown the stress, the earth pressure it is there in this. So this is earth pressure, pH is earth pressure. So due to earth pressure you find the p by a that is m by z that is the maximum pressure p1 you will get and the minimum pressure you will get on this particular side. The basic design principle of cantilever retaining wall is to see that the pressure at the end of the heel slab is never negative. That means it should not lose the contact since soil cannot apply negative earth pressure. So therefore the retaining wall should not leave the soil that means it should remain with the founding soil. So that means this reaction p2 can be 0, it cannot be negative. If it is negative then it will get lifted up, so that is not at all possible. So if the earth pressure is negative, the stability of the structure itself is in doubt. So structure will not be stable if earth pressure is negative. So therefore you should see that the minimum pressure that is p2 should be either 0 or it should be greater than 0. That is what we should observe. So apart from soil pressure direct weights of backfill and the surcharge of the wheel are also considered in the design. So this is shown in figure number two. Figure number two shows so this is w1 weight of soil, w2, w3 weight of stem, w4 weight of base slab and this is pH is earth pressure. So we are supposed to carry out first we should assume the dimensions of the retaining wall by thumb rule and then afterwards we have to do stability analysis. So when we find the structure is stable further we go for design of stem slab, design of toes slab and design of heel slab. So I have already created a video for stability analysis. You please go through the stability analysis so that you will understand how to find the reactions and everything. So next analysis of toes slab. So where is the maximum moment in the toes slab? If you just observe the figure one so this is toes slab from here to here of length l1. So up to the face of the stem slab this is a toes slab. So where will be the maximum bending moment for this particular toes slab when it is subjected to pressure p1 here and pressure p3 here. So where will be the maximum bending moment? Just think of the maximum bending moment in the toes slab will be at the face of the stem slab. At the face of the stem slab you find the maximum bending moment it is a cantilever of length l1 which is a hogging bending moment. So because it will try to lift up the toe portion. The pressure is upward therefore it will try to lift up. So taking moment about the face of the stem slab m is equal to p1 into l1 square by 2 is p1 isn't it? So therefore here it will be p3 into l1 square by 2 that will be the pressure due to UDL then p4 into 2 third l1. So this is the p4 node p4 node this is at 2 third l1 of a triangular portion. So we will find out the maximum bending moment. So mu is equal to 1.5 times m where what is E? E is nothing but eccentricity eccentricity is B by 2 that is base width divided by 2 minus sigma ms minus sigma mo divided by mw. So ms is the stabilizing moment some of stabilizing moment mo is stem slab over turning moment. And the algebraic sum of these two divided by the weight downward weight that will give us eccentricity E is equal to B by 2 minus this. Then p1 is equal to sigma w total weight downward divided by B into 1 plus 6E by B. So this should be less than SBC of soil and p2 is sigma w by B into 1 minus 6E by B this should be greater than or equal to 0. And p3 is the force which is at the face of the stem pressure at the face of the stem. So it is p2 plus p1 minus p2 divided by B into B minus l1 and p4 is the area of the triangular diagram it is half l1 into p1 minus p3. Now the design of tow slab equating MU limit with MU. MU limit it depends upon the formula it is 0.418 fckbd square if it is mild steel 0.138 fckbd square if it is hysd415 and it is 0.133 fckbd square if it is hysd bars 500 fe 500. Find the effective depth required and compare it we have to by equating MU limit with MU. So we find the effective depth required and we will compare it with the whatever we have provided in preliminary dimensions for which we have done already the stability analysis. Which shall be greater the provided dimension should be greater than or equal to the effective depth required. Now determine area of steel by using g.1.1b. So if we find that if it is MU is less than MU limit so we will find that you will be having the under reinforced section then we will find out the area of steel is determined by this equation. And it is also to be compared with EST minimum because distribution steel is EST minimum 0.12 by 100 into B into D and B is always taken 1 meter that is 1000 mm. Provide design steel at bottom and minimum steel as a distribution steel perpendicular to it as shown in figure number 3. So this is figure number 3. So figure number 3 this is your tow slab and here design steel will be at the bottom and the distribution steel will be perpendicular to it. So both are same that means in this particular case the design steel is less than usually the span is less L1 is less therefore design steel is less than the minimum steel therefore we have provided same steel as the steel on let the side as well as perpendicular to it. So these are the references used for preparation of this particular video. And thank you very much.