EFTA01459032.pdf

Volatility is the degree of variation of a trading-price series over Investment traffic lights (pages 10-11): comments regarding our time. tactical and strategic view The Japanese yen LIP(?) is the official currency of Japan. Tactical view: Yield is the income return on an investment referring to the The focus of our tactical visw for fixed income is on trends in interest or dividends received from a security and is usually bond prices, not yields. expressed annually as a percentage based on the investments cost, its current market value or its face value. Strategic view: A yieldco is a publicly traded company that is formed to own — The focus of our strategic view for sovereign bonds is on operating assets that produce a predictable cash flow, primarily yields, not trends in bond prices. through long term contracts. The goal is to reduce financing — For corporates and securitized/specialties bonds, the arrows costs (for example by securing cheaper debt financing). depict the respective option-adjusted spread. — Both spread and yield trends influence the bond value. Investors who aim to profit only from spread trends must hedge against changing interest rates. i et 0,1 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0119232 CONFIDENTIAL SDNY_GM_00265416 EFTA01459032