EFTA01459665.pdf

CIO View Special 20 A horizontal rig is a form of directional drilling, in which a drill is The RofA Merrill Lynch US Corporate Master Index value tracks typically sent down vertically underground and then turned into the performance of US dollar denominated investment grade rated the gas or oil reservoir at a ninety degree angle (honzontally). corporate debt publically issued in the US domestic market. inflation is the rate at which the general level of prices for goods The BofA Merrill Lynch US High Yield Index tracks the performance and services is rising and, subsequently, purchasing power is of US dollar denominated below investment grade, including zero- falling. coupon and payment-in-kind (PIK) bonds. An investment grade (IG) rating by a rating agency such as The Bora, Merrill Lynch US hi igh`rield Energy Default Rate Standard & Poor's indicates that a bond has a relatively low risk of indicates how many issuers of the BofA Merrill Lynch U.S. High default. Yield energy sector are in default in any given month. The jPiviorgan Emerging Market Bond Index (E MBI) are a set of The BofA Merrill Lynch US High Yield Energy index tracks the three bond indices to track bonds in emerging markets operated performance of US dollar denominated below investment grade by J P Morgan. The indices are the Emerging Markets Bond index corporate debt from energy companies publicly issued in the US Plus, the Emerging Markets Bond Index Global and the Emerging domestic market. Markets Bond Global Diversified Index. The MSC' Japan Index is designed to measure the performance of Junk bond refers to the degree to which an asset or security can be the large and mid-cap segments of the Japanese market bought or sold in the market without affecting the asset's price and to the ability to convert an asset to cash quickly. The option adjusted spread ("OAS-i is a commonly used measure for fixed income securities with embedded options (cal€, put or Liquidity refers to the degree to which an asset or security can be sink). It makes the yield of such instruments comparable to similar bought or sold in the market without affecting the asset's price and securities without such embedded options. Typically, the OAS for to the ability to convert an asset to cash quickly. credit sensitive instruments is quoted vis-a-vis the respective Swap spread curve. Technically, option pricing methods are used to Loan-loss provisions are an allowance for bad loans, for example evaluate the instruments with embedded options. due to customer defaults or a renegotiation of the terms of a loan. The Organization of the Petroleum Exporting Countries (OPEC) is The final payment date of a financial instrument is its maturity. an international organization with the mandate to "coordinate and unify the petroleum policies" of its meanwhile 12 members. A maturity profile describes the amount and the year in which individual trenches of debt need to be repaid. Oil sands refer to sand and rock material which contains crude bitumen (a heavy, viscous form of crude oil). The BotA Merrill Lynch Emerging Markets Corporate Plus index tracks the performance of U.S. dollar- and euro-denominated The Organiration for Economi.: Co-operation and Development emerging markets. (OECD) started In 1948 as the Organization for European Economic Co-operation (GEEC) and changed its name in 1960, The Soh; Merrill Lynch Euro Corporate 'nicktracks the now representing 34 countries with democratic governments and performance of EUR denominated Investment grade corporate market economies. debt publicly issued in the eurobond or Euro member domestic merkets. The Permian Basin is an oil field located in western Texas and the adjoining area of southeastern New Mexico. The SofA Merrill Lynch European High Yield Bond Index tracks the performance of euro- and British pound sterling-denominated Primary issuance is the sale of newly issued debt securities by below investment-grade corporate debt publicly issued in the borrowers to lenders. eurobond, sterling-domestic or eurcrdomestic markets by issuers around the world. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 120258 CONFIDENTIAL SDNY_GM_00266442 EFTA01459665