EFTA00836903.pdf

From: Richard Kahn To: "Jeffrey E." <[email protected]> Subject: Fwd: TRS on AAPL Date: Fri, 08 Jan 2016 21:36:47 +0000 Inline-Images: Mail_Attachment.gif; Mail_Attachment(1).gif I spoke with Daniel and Vahe regarding SFL going long AAPL via TRS Terms would be very similar to discussion from Oct 2014 I) Notional: 250,000 shares of AAPL 2) Tenn: 1 year 3) Interest: 1 month libor (42 basis points) + 75 basis points (settlement will be quarterly) Open Points that need your guidance 4) Collateral: 35% of Notional (assume aapl 97 x 250,000 = 24,250,000 x 35% = 8,487,500 -> DB asked for cash and i proposed using stock which would require 2x or 16,975,000 -> since trade is in AAPL we cannot use that stock - other large positions to use for collateral Bank of New York 250,000 shares x 37.13 = 9,282,500 General Motors 97,525 shares x 29.52 = 2,878,938 Apollo 263,157 shares x 14 = 3,684,198 Healthnet 25,000 shares x 66.29 = 1,657,250 5) Purchase via a limit order on price or Volume Weighted Average Price (can be done for day or 5, 10 minute or any window of time) Please advise Thank you Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel fax cel Begin forwarded message: From: Daniel Sabba Subject: TRS on AAPL - creating synthetic long exposure [C] Date: October 24, 2014 at 12:18:05 PM EDT To: jeevacation@ mail.com Cc: Paul Morris < , Vahe Ste avian >, Stewart Oldfield c EFTA00836903 Classification: Confidential Jeffrey, Please see below indication for TRS in AAPL. Notional: 1,000,000 shares of AAPL Term: 1 year Southern Financial receives: Total return in AAPL Southern Financial pays: 1mL + 75bps Commissions: 3 cents per share to enter and exit the trade. There is no additional break up fee. Execution: We would suggest best efforts VWAP for execution Color from trading desk: "this is probably the worst name for long total return - the street will generally be high". Best regards, Daniel Daniel Sabba Director I Key Client Partners Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue. 26th Floor Ne Tel. Mobil Email Please note all prices are indicative and subject to change without notice. Derivatives are financial transactions based upon one or more predetermined market factors where periodic payments (or a one-time lump-sum payment) are made by each of the parties to the transaction based upon the value of the market factor or factors. The amount of the payment(s) will either be set at a fixed amount or fluctuate as the value of the underlying market factor fluctuates. The underlying market factors are items or variables which are subject to market fluctuations; for example, interest rates, currency exchange rates, assets, stock prices, stock index levels, commodities or a combination of one or more of these factors. Derivatives are normally used either as a hedging device or as an investment vehicle. Over- the-counter (OTC) derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk. In certain transactions, you could lose your entire investment or incur unlimited loss. This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA00836904