EFTA01450717.pdf

From: Paul Morris Sent: 12/21/2013 12:06:14 PM To: Caroline Kitidis Subject: Fw: Fwd: Japanese Equity Basket... IC1 Classification: Confidential Hi fyi. talk next week. From: Jeffrey Epstein ljeevacationtrgmail.comi Sent: 12/20/2013 09:34 AM EST To: Paul Morris Subject: Fwd: Japanese Equity Basket... ICI Forwarded messaue From: Tazia Smith Date: Wed, Dec 18, 2013 at 2:31 PM Subject: Japanese Equity Basket... [C] To: jeevacation gmalI corn Cc: Paul Morris Vahe Stepanian Classification: Confidential Jeffrey - Now that the FOMC decision is behind us (with the $10bn taper we just talked about), here is the basket of single-name Japanese equities that we put together to build on your bullish view (presently in DXJ). To incorporate your bearish yen view, we could quanto this basket like we talked about...in note form, we priced 13mos with HSBC, comes to a 95% participation eg. if the basket was up 18%, note would be up 17.1%; if basket is down 10%, note is down 9.5%. max loss 95% of principal (indicative levels only, subject to market movement, as of 12/18/13). We can look to add to your yen short position opportunistically as an alpha overlay (USDJPY now at 103.40). Let us know your thoughts, Tazia Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 106539 CONFIDENTIAL SDNY_GM_00252723 EFTA01450717