EFTA01373779.pdf

For Key Client Partners or US Institutional Investors. Not for Retail Distribution TOB Senior Certificates Overview of Risks and Considerations TOB Senior Certificate Risks Muni Bond Price Risks Risk Ex • lanation Consideration Risk Ex • lanation Consideration Trigger Price Risk If the bond price Investor should evaluate Interest Rate Broad, risk-free rates Possible to partially I fully hedge decreases below required Bond Price Risks mentioned Risk increase to offset rate risk OC levels. the residual here and be aware that investor may de-lever or transaction can unwind early wiwind the trust Muni Market Muni market spreads. Investor must be comfortable DB Credit Risk TOB Senior Certificates DB is currently rated Spreads measured as the that MMD cannot be directly investors take Baa2/BBB-11A-: Investor has difference between MMD hedged through interest rate collateralized credit 5 business day put option and LIBOR. may increase swaps exposure to the underlying and can exit the transaction in mun bond backed by a advance of a credit event put to Deutsche Bank Idiosyncratic Specific credit quality of Muni Bonds have historically Credit Spread the issuer deteriorates. experienced a very low default Tender Option TOTE events include Upon occurrence of any of increasing the single- rate; Investors can select names Termination Taxability/Bankruptcy/Cred these events. TOB Senior name spread across ratings and sectors that Events (TOTE) it downgrade below Certificate holders lose their fits specific risk / return appetite Risk• investment grade/Failure right to tender and instead the to pay bonds are sold The proceeds are used to pay the TOB Liquidity Specific bonds may Investors must be comfortable Senior Certificate Holders. if Spread Risk contain nonstandard or with the inherent higher risks not sufficient, they receive the complex features, leading associated with less liquid underlying bonds in kind to a wider single-name bonds, as perceived by the spread. especially in general market that determines times of market stress the price over time TOB Senior Investor receives floating Can be addressed by Certificate Rate rate that resets periodically modifying the tenor of the Optionality / Callable Muni Bonds are Investors must be comfortable Risk based on the benchmark TOB Senior Certificate Capability generally called when that the duration of callable rate and remarketing economically bonds can change quickly. spread set by the advantageous to the depending on the market's view remarketing agent. The issuer, not the investor of the likelihood of being called. spread and the benchmark taking into account the costs of rate can reset lower/ issuing refinancing bonds higher based on the current market environment Deutsche Bank • For full list of Unwind events please refer to Master Terms of Trust Agreement and Series Documents. DB can be provide additional information upon request All transactions subject to final ascot legal, tax, and other internal 08 approvals. DR is not a financial. accounting, or tax advisor to Investor and Investor should 16 consider carefully with their advisors prior to executing any transaction. Further information can be provided upon request CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0068136 CONFIDENTIAL SDNY_GM_00214320 EFTA01373779