EFTA02464104.pdf

From: jeffrey E. <[email protected]> Sent: Sunday, May 22, 2016 11:51 AM To: Shahzad Shahbaz Subject: Re: Investment Structures I dont like funds. no need to pay extra fees and be =ocked up. . I think the valuable commodity is " kno=ledge". it is mobile , valuable, can be transmitted. =AO etc. . I will explain more when we meet. On Sun, May 22= 2016 at 7:09 AM, Shahzad Shahbaz < <mailto: » wrote: As requested; * =C2* List of Fixed Income Names Bucke= Refer=nce Entity Type Weight Sy CDS Spread Moody's</=> S&P Fitch 1 Sovereign Portuguese Republic Senior 5.00% 1 EFTA_R1_01571314 EFTA02464104 275 Bal BB+ BB+ 2 Federation of Malaysia<=> Senior 5.00% 146 A3 A- A- 3 Autos General Motors Co Senior 5.00% 210 BBB- BBB- 4 Volkswagen AG Senior 5.00% 162 A3 2 EFTA_R1_01571315 EFTA02464105 BBB+ BBB+ 5 Commodity Producer Petroleos Mexicanos Senior 5.00% 350 Baa3 BBB+ BBB+ 6 Rio Tinto Ltd Senior 5.00% 175 Baal A- A- 7 BHP Billiton Ltd Senior 5.00% 158 A3 A 3 EFTA_R1_01571316 EFTA02464106 A+ 8 ConocoPhillips Senior 5.00% 170 Baal A A- 9 Repsol SA Senior 5.00% 265 Baal BBB- BBB 10 Consumer Staples Tesco PLC Senior 5.00% 265 BB+ BB+ 11 4 EFTA_R1_01571317 EFTA02464107 EU Financials (sub) Banco Bilbao Vizcaya Argentaria SA Subordinated 5.00% 265 Baa3 BBB+ 12 Banco Santander SA</=> Subordinated 5.00% 265 Baal BBB+ 13 Standard Chartered Ban= Subordinated 5.00% 275 A3 A 14 Assicurazioni Generali SpA Subordinated 5.00% 5 EFTA_R1_01571318 EFTA02464108 240 Baa3 BBB+ 15 Societe Generale SA<=u> Subordinated 5.00% 185 Baa3 A- 16 Royal Bank of Scotland=Plc Subordinated 5.00% 255 Bat BBB 17 BNP Paribas SA Subordinated 5.00% 160 Baal A 18 Credit Suisse Group AG 6 EFTA_R1_01571319 EFTA02464109 Subordinated 5.00% 178 Baa3 A- 19 Barclays Bank Plc Subordinated 5.00% 250 Baa3 A- 20 HSBC Bank Plc Subordinated 5.00% 200 A2 A+ Deutsche is good on fixed income. BNP on equiti=s * Still waiting for the proposal on the first Ios= idea. My gut feeling is that they will take most of the return away. Will=let you know. ` We have made some selected direct investments i= the new economy names; tech, bio etc. Not really investing in tech funds.=u> 7 EFTA_R1_01571320 EFTA02464110  From: jeffrey E. [mailto:[email protected] Sent: Sunday, May 22, 2016 1:23 PM To: Shahzad Shahbaz < <mailto >> Subject: Re: Investment Structures in your fixed income basket, which stocks did =ou choose. ? 2. which banks have you found , or person at ban= that you think provides the best execution and flexibility. . 3. =AO Sk Hamad said that one of the banks might take =he first two stock loss? 4 Do you currently invest in Tech = or tech funds? med tech, bio tech, cyber etc.? On Sun, Ma 22, 2016 at 6:20 AM, Shahzad Shahbaz <=SShahbaz@almirq=b.com <mailto > wrote: 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;<=b> *=/span> *=A0 Put option on the worst performing stock in a basket<=span> *=/span> •=A0 One year structure *=/span> *=A0 Coupon guaranteed irrespective of performance of the =tocks in the basket. *=/span> *=A0 Put option strike at 70% of reference/spot<=u> 8 EFTA_R1_01571321 EFTA02464111  *=/span> •=A0 Payoff if required in stock at 70% strike</=> *=/span> *=A0 We identified 3 baskets based on stocks we are comfor=able to own in a downside scenario at a 30% discount.=/p> •=/span> *=A0 Basket 1; BHP Billiton, Bank of America, Shell, BNP P=ribas *=/span> *=A0 Basket2; Credit Suisse, General Motors, BASF, General=Electric *=/span> *=A0 Basket 3; Barclays, Adidas, Siemens, Santander=u> *=/span> *=A0 The coupon on the above baskets ranges between 8.5 =E2 9.5% without any leverage. •=/span> *=A0 Obviously you can select any stock of your preference=in the basket. Stocks with higher volatility and less correlation will gen=rate a higher coupon for the basket. FIXED INCOME;=/u> *=/span> *=A0 We identified 20 investment grade names to place in a=portfolio *=/span> *=A0 Given the uncertainty in the energy, commodity and ba=k sectors we selected some of these names to maximize returns •=/span> *=A0 5 year structure *./span> *=A0 Exposure through 5 year CDS *=/span> •=A0 Based on leverage we are able to generate double digi= returns. *./span> *=A0 The risk to the return is margin calls on the leverag= if the value of the portfolio declines due to spreads widening../u> *./span> *=A0 Principal risk is based on default in any of the cred=ts in the portfolio which is limited to 5% per name.c=p> I hope the above is useful. Please le= me know if you have any questions. Best Shahzad. 9 EFTA_R1_01571322 EFTA02464112  =/u> please no=e The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 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 10 EFTA_R1_01571323 EFTA02464113