EFTA00836509.pdf

From: "Barrett, Paul S" cta. To: "'Brad Wechsler" aa CC: "'JetFre E stein"' <eevacation gmail.com>, "Nelson, Justin D" , Barrett Team <=I=IIIMI > Subject: Ideas Update Date: Fri, 15 Jan 2016 00:40:21 +0000 Brad Four things I want to bring to your attention following the fun start to the year: § Eurostoxx 50 Dividends o Dividend contracts have sold off alongside the recent market turmoil, opening up a good entry point in our view o Currently, the market expectation for 2017 dividend payments of SXSE companies is 106 EUR. We believe the payout will be closer to 123 indicating potential upside of -17% § Eurostoxx 50 Structure - the spike in volatility allows for some interesting structured note pricing linked to the Eurostoxx 50 whereby you can get 26% downside protection with unlimited upside for 18 months § CDX High Yield Tranche o Outside of a few select single credits, this is our preferred method of putting money to work in High Yield. We're focusing on the 15-25 tranche in the stack, which carries well (-6%) and offers some buffer against initial defaults § Middle East peg breaks o With oil potentially low for long, countries such as Saudi and UAE may run into issues holding their pegs against USD. Already, the Saudis have spent a large amount of reserves defending their peg. We like positioning for this using optionality. Paul Paul Barrett I Managing Director I Global Investment Opportunities Group I J.P. Morgan Securities LLC I J.P. Morgan Private Bank I J.P. Morgan Chase Bank N.A. 320 Park Avenue, 14th Floor, New York, NY 10022 I T: F: EFTA00836509 NOT AN OFFICIAL CONFIRMATION: For informational purposes only. This report does not represent an official account of the holdings, balances, or transactions made in your account and is being provided at your request. Please refer to your monthly account statement for the official record of all of your account activities. For question, please call your J.P. Morgan representative. In discussion of options and other strategies, results and risks are based solely on hypothetical examples cited; actual results and risks will vary depending on specific circumstances. Investors are urged to consider carefully whether option or option-related products in general, as well as the products or strategies discussed herein are suitable to their needs. In actual transactions, the client's counterparty for OTC derivatives applications is JPMorgan Chase Bank, N.A., and affiliates. For a copy of the "Characteristics and Risks of Standardized Options" booklet, please contact your JPMorgan Advisor. This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://wwwjpmorgan.com/pages/disclosures/email. This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://wwwjpmorgan.corn/pages/disclosures/email EFTA00836510