EFTA02463079.pdf

From: jeffrey E. <[email protected]> Sent: Monday, May 23, 2016 11:32 AM To: Richard Kahn Subject: Fwd: Investment Structures Forwarded messag= From: Shahzad Shahbaz <= > Date: Sun, May 22, 2016 at 7:09 AM Subject: RE:=Investment Structures To: "jeffrey E." <[email protected] <mailto:=Tevacation@gmailcom» As requested; * =C2* List of Fixed Income Names Bucke= Refer=nce Entity Type Weight Sy CDS Spread Moody's</=> S&P Fitch 1 Sovereign Portuguese Republic Senior 1 EFTA_R1_01569925 EFTA02463079 5.00% 275 Ba 1 BB+ BB+ 2 Federation of Malaysia<=> Senior 5.00% 146 A3 A- A- 3 Autos General Motors Co Senior 5.00% 210 BBB- BBB- 4 Volkswagen AG Senior 5.00% 162 2 EFTA_R1_01569926 EFTA02463080 A3 BBB+ BBB+ 5 Commodity Producer Petroleos Mexicanos Senior 5.00% 350 Baa3 BBB+ BBB+ 6 Rio Tinto Ltd Senior 5.00% 175 Baal A- A- 7 BHP Billiton Ltd Senior 5.00% 158 A3 3 EFTA_R1_01569927 EFTA02463081 A A+ 8 ConocoPhillips Senior 5.00% 170 Baal A A- 9 Repsol SA Senior 5.00% 265 Baal BBB- BBB 10 Consumer Staples Tesco PLC Senior 5.00% 265 BB+ BB+ 4 EFTA_R1_01569928 EFTA02463082 11 EU Financials (sub) Banco Bilbao Vizcaya Argentaria SA Subordinated 5.00% 265 Baa3 BBB+ 12 Banco Santander SA</=> Subordinated 5.00% 265 Baal BBB+ 13 Standard Chartered Ban= Subordinated 5.00% 275 A3 A 14 Assicurazioni Generali SpA Subordinated 5 EFTA_R1_01569929 EFTA02463083 5.00% 240 Baa3 BBB+ 15 Societe Generale SA<=u> Subordinated 5.00% 185 Baa3 A- 16 Royal Bank of Scotland=Plc Subordinated 5.00% 255 Ba2 BBB 17 BNP Paribas SA Subordinated 5.00% 160 Baal A 18 6 EFTA_R1_01569930 EFTA02463084 Credit Suisse Group AG Subordinated 5.00% 178 Baa3 A- 19 Barclays Bank Plc Subordinated 5.00% 250 Baa3 A- 20 HSBC Bank Plc Subordinated 5.00% 200 A2 A+ Deutsche is good on fixed income. BNP on equiti=s * Still waiting for the proposal on the first Ios= idea. My gut feeling is that they will take most of the return away. Will=let you know. * We have made some selected direct investments i= the new economy names; tech, bio etc. Not really investing in tech funds.=u> 7 EFTA_R1_01569931 EFTA02463085 From: Jeffrey E. [mailto:[email protected]] Sent: Sunday, May 22, 2016 1:23 PM To: Shahzad Shahbaz < > Subject: Re: Investment Structures in your fixed income basket, which stocks did =ou choose. ? 2. which banks have you found , or person at ban= that you think provides the best execution and flexibility. . 3. =AO Sk Hamad said that one of the banks might take =he first two stock loss? 4 Do you currently invest in Tech = or tech funds? med tech, bio tech, cyber etc.? On Sun, May 22, 2016 at 6:20 AM, Shahzad Shahbaz < > wrote: Jeffrey, Hope all is well. Further to your meeting, HE Sheikh Ha=ad asked me to send you a summary of the 2 investment structures. EQUITY PUT OPTIONS;<=b> *=/span> *=A0 Put option on the worst performing stock in a basketaspan> *=/span> *=A0 One year structure *=/span> *=.40 Coupon guaranteed irrespective of performance of the =tocks in the basket. *=/span> *=A0 Put option strike at 70% of reference/spotau> 8 EFTA_R1_01569932 EFTA02463086  *=/span> *=A0 Payoff if required in stock at 70% strike<A> *=/span> *.A0 We identified 3 baskets based on stocks we are comfor=able to own in a downside scenario at a 30% discount.qp> *=/span> *=A0 Basket 1; BHP Billiton, Bank of America, Shell, BNP P=ribas *=/span> *.A0 Basket2; Credit Suisse, General Motors, BASF, General=Electric *=/span> *=A0 Basket 3; Barclays, Adidas, Siemens, Santander=u> *=/span> *=A0 The coupon on the above baskets ranges between 8.5 =E2 9.5% without any leverage. *./span> *=A0 Obviously you can select any stock of your preference=in the basket. Stocks with higher volatility and less correlation will gen=rate a higher coupon for the basket. FIXED INCOME;=/u> *=/span> 41=A0 We identified 20 investment grade names to place in a=portfolio *=/span> *=A0 Given the uncertainty in the energy, commodity and ba=k sectors we selected some of these names to maximize returns *=/span> *=A0 5 year structure *./span> *.A0 Exposure through 5 year CDS *=/span> *=A0 Based on leverage we are able to generate double digi= returns. *=/span> *=A0 The risk to the return is margin calls on the leverag= if the value of the portfolio declines due to spreads widening4u> *./span> *=A0 Principal risk is based on default in any of the cred=ts in the portfolio which is limited to 5% per name.<=p> I hope the above is useful. Please le= me know if you have any questions. Best Shahzad. 9 EFTA_R1_01569933 EFTA02463087  =/u> please no=e The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved please note =he information contained in this communication is confidential, may be =ttorney-client privileged, may constitute inside information, and is in=ended only for the use of the addressee. It is the property of JEEUnauthorized use, disclosure or copying of this communication or any p=rt thereof is strictly prohibited and may be unlawful. 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