EFTA02463882.pdf

From: jeffrey E. <[email protected]> Sent: Sunday, May 22, 2016 10:23 AM To: Shahzad Shahbaz Subject: Re: Investment Structures in your fixed income basket, which stocks did you ch=ose. ? 2. which banks have you found , or person at bank that=you think provides the best execution and flexibility. . 3. =AO Sk Hamad said that one of the banks might take the fi=st two stock loss? 4 Do you currently invest in Tech ?=C2 or tech funds? med tech, bio tech, cyber etc.? =div class="gmail_extra"> On Sun, May 22, 2=16 at 6:20 AM, Shahzad Shahbaz < <mailto >> =rote: Jeffrey, Hope all is well. Further to your meeting, HE Sheikh Ha=ad asked me to send you a summary of the 2 investment structures. EQUITY PUT OPTIONS;</=> * =C2* Put option on the worst performi=g stock in a basket • =C2* One year structure=/span> " =C2* Coupon guaranteed irrespective o= performance of the stocks in the basket. * =C2* Put option strike at 70% of refe=ence/spot * =C2* Payoff if required in stock at 7=% strike * =C2* We identified 3 baskets based on=stocks we are comfortable to own in a downside scenario at a 30% discount.=u> * =C2* Basket 1; BHP Billiton, Bank of =merica, Shell, BNP Paribas " =C2* Basket2; Credit Suisse, General =otors, BASF, General Electric 1 EFTA_R1_01571035 EFTA02463882  * =C2* Basket 3; Barclays, Adidas, Siem=ns, Santander * =C2* The coupon on the above baskets =anges between 8.5 — 9.5% without any leverage. * =C2* Obviously you can select any sto=k of your preference in the basket. Stocks with higher volatility and less=correlation will generate a higher coupon for the basket. FIXED INCOME; * =C2* We identified 20 investment grad= names to place in a portfolio * =C2' Given the uncertainty in the ene=gy, commodity and bank sectors we selected some of these names to maximize=returns * =C2* 5 year structure=/u> * =C2* Exposure through 5 year CDS * =C2* Based on leverage we are able to=generate double digit returns. ' =C2* The risk to the return is margin=calls on the leverage if the value of the portfolio declines due to spread= widening. * =C2* Principal risk is based on defau=t in any of the credits in the portfolio which is limited to 5% per name.<=> I hope the above is useful. Please le= me know if you have any questions. Best Shahzad. =/u> 2 EFTA_R1_01571036 EFTA02463883  please =ote The information contained in this communication is confiden=ial, may be attorney-client privileged, may constitute inside informati=n, and is intended only for the use of the addressee. It is the propert= of JEE Unauthorized use, disclosure or copying of this communica=ion or any part thereof is strictly prohibited and may be unlawful. If =ou have received this communication in error, please notify us immediat=ly by return e-mail or by e-mail to [email protected] <mailto:jeevacation@gmail=com> , and destroy this comm=nication and all copies thereof, including all attachments. copyright -=11 rights reserved 3 EFTA_R1_01571037 EFTA02463884