EFTA01192628.pdf

Hard asset put structure Area of expertise: Private markets Theme: Distressed asset opportunities Overview — DB specializes in lending against non vanilla collateral including hard assets. While lending against these assets provide an attractive risk reward profile, it is not capital efficient for DB to hold this type of collateral on its balance sheet — DB is able to offer compelling, one-off, opportunities for investors interested in ownership of these assets. This is accomplished through the use of a "put" structure whereby an interested investor sells a put on the underlying asset at a discount to the market value. If the underlying borrower defaults on his loan at or before expiration, DB has the right to sell the asset to the investor at the strike price. If the borrower does not default the investor retains the premium paid by DB — Risk: Deutsche exercises the option and the put seller has to pay strike price of the asset Transaction explanation Indicative option terms — At initiation: — DB enters a transaction with a put writer. The put writer agrees 30-50% asset Principal $25-250mm Strike Price to purchase a hard asset at a predetermined "strike" price value should DB exercise the option. The strike price can vary between -30-50% of the market value of the asset Day 1 Term 1-3 years Premium 1-2% per annum 4E_ Put Purchase Put Premium Writer — At expiration: — DB will have the right to sell the asset to the put writer at the strike price At exercise Strike 4— Put Asset 03 Strike Writer (30-50'. market value) Deutsche Asset & Wealth Management For U.S. Key Client Partners (KCP) Clients Only 0 EFTA01192628  0 THIS MATERIAL IS INTENDED FOR INSTITUTIONAL CUSTOMERS ONLY AS DEFINED BY FINRA 4512(c). The trading and investment ideas discussed herein are general and do not take into account an institutional client's particular circumstances (including tax situation), investment guidelines, investment goals, restrictions or needs. Deutsche Bank ("DB") is not acting as a legal, financial, tax or accounting adviser or in any other fiduciary capacity with respect to any proposed transaction(s) mentioned herein. This document does not constitute the provision of investment advice and is not intended to do so, but is only intended to be general information. This material is for our clients' informational purposes and is a general solicitation of derivatives business for the purposes of, and to the extent it is subject to, 6 6 1.71 and 23.605 of the U.S. Commodity Exchange Act. This is not an offer, advice, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. Any offering or potential transaction that may be related to the subject matter of this communication will be made pursuant to separate and distinct documentation and in such case the information contained herein will be superseded in its entirety by such documentation in final form. Key Clients Partners ("KCP") services are offered to a select group of Deutsche Asset & Wealth Management ("DeAWM") clients who are able to meet certain criteria including, without limitation, financial and sophistication qualifications. All Key Clients Partners opportunities may not be available in all DeAWM locations. The sample trading and investment idea discussed herein is general and does not take into account a client's particular circumstances (including his or her tax situation), investment guidelines, investment goals, restrictions or needs. DB is not acting as your legal, financial, tax or accounting adviser or in any other fiduciary capacity with respect to any proposed transaction(s) mentioned herein. This document does not constitute the provision of investment advice and is not intended to do so, but is only intended to be general information. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but we make no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness, completeness of such information or that any returns indicated will be achieved. In addition we have no obligation to update, modify or amend this communication or to otherwise notify a recipient in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Investments are subject to various risks, including market fluctuations, regulatory change, possible delays in repayment and loss of income and principal invested. The value of investments can fall as well as rise and you may not recover the amount originally invested at any point in time. Furthermore, substantial fluctuations of the value of the investment are possible even over short periods of time. Deutsche Asset & Wealth Management For U.S. Key Client Partners (KCP) Clients Only 1 EFTA01192629  Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and it should not be relied upon as such. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this report and are subject to change without notice and involve a number of assumptions which may not prove valid. The terms of any investment will be exclusively subject to the detailed provisions, including risk considerations, contained in the Offering Documents. When making an investment decision, you should rely on the final documentation relating to the transaction and not any summary contained herein. Past performance is no guarantee of future results; nothing contained herein shall constitute any representation or warranty as to future performance. Further information is available upon investor's request. Deutsche Bank is not acting as your municipal advisor, swap advisor, financial advisor or in any other advisory, agency or fiduciary capacity with respect to any transaction with you (whether or not Deutsche Bank has provided or is currently providing other services to you on related or other matters) unless expressly agreed by Deutsche Bank in writing. Deutsche Bank may engage in transactions in a manner inconsistent with the views discussed herein. Deutsche Bank trades or may trade as principal in the instruments (or related derivatives), and may have proprietary positions in the instruments (or related derivatives) discussed herein, and these may be known to the author. Deutsche Bank may make a market in the instruments (or related derivatives) discussed herein. Assumptions, estimates and opinions expressed constitute the author's judgment as of the date of this material and are subject to change without notice. This material is not a research report and was not prepared, reviewed or edited by the Deutsche Bank Research Department. The views expressed herein may differ from those of the Research Department. Sales and Trading functions are subjects to additional potential conflicts of interest which the research Department does not face, so this material should not necessarily be considered objective or unbiased. 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Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services. Brokerage services are offered through Deutsche Bank Securities Inc., a registered broker-dealer and investment adviser, which conducts investment banking and securities activities in the United States. Deutsche Bank Securities Inc. is a member of FINRA, NYSE and SIPC. Banking and lending services are offered through Deutsche Bank Trust Company Americas, member FDIC, and other members of the Deutsche Bank Group. (t) 2014 Deutsche Bank AG. All rights reserved. 019313 091114 Deutsche Asset & Wealth Management For U.S. Key Client Partners (KCP) Clients Only 3 EFTA01192631