EFTA01458009.pdf

Sovereign bonds (also referred to as "sovereigns") are bonds Investment traffic lights (pages 8-9): comments regarding our issued by governments. tactical and strategic view Subsidiarity, in a European context, refers to the belief that Tactical view: power should be devolved to the smallest appropriate level of government. — The focus of our tactical view for fixed Income is on trends in bond prices, not yields. Systematic managers, in the context of Commodity Trading Advisors (CTAs) seek to identify and benefit from trends across a Strategic view: diversified portfolio of assets. The focus of our strategic view for sovereign bonds is on Treasures are fixed-interest US. government-debt securities yields, not trends in bond prices. with different maturities. Treasury bills, also T-bills, mature in one — For corporates and securitizedispeciatties bonds, the arrows year or less. Treasury notes, also Imotes, mature in two to ten depict the respective option-adjusted spread. years. Treasury bonds, also T-bonds, mature in twenty to thirty years. — Both spread and yield trends influence the bond value. Investors who aim to profit only from spread trends must The Troika consists of the International Monetary Fund (IMF), the hedge against changing interest rates. European Central Bank (ECB) and the EU Commission. Ungeared operations or investments do not have any associated debt. Valuation attempts to quantify the attractiveness of an asset, from example through looking at a firm's stock price in relation to its earnings. Value at Risk (VIM is a measure of risk. It is the potential loss of a particular risk position at a given probability within a given time horizon Volatility is a statistical measure of the dispersion of returns for a given security or market index. 20 0 C..)1/ 4*I4mmu&E.t16)61A:Laun-17015 CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0117759 CONFIDENTIAL SDNY_GM_00263943 EFTA01458009