EFTA01452331.pdf

From: Tazia Smith Sent: 1/28/2014 12:40:19 PM To: jeffrey epstein [email protected]; Paul Morris Subject: Re: Depressed options volatility makes 'Renmimbi weaker' hedges very cheap I KCP Capital Markets IC) Classification: Confidential Understood. Jeffrey. long USDCNH calls was the trade. taking the other side of a crowded long/overvalued CNY and inexpensive entry: I) Bin a ly expiry. 6.2 / 6.7 strike USDCNH call spread. Premium (offer) -4).431% of USD notional. Spot breakeven 6.226 2) Buy a ly expiry. 6.3 / 6.8 strike USDCNH call spread. Premium (offer) -0.30% of USD notional. Spot breakeven 6.318 USD Tazia Smith Director Key Client Partners - US Deutsche Bank Securities. Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York. NY 10154 Tel: Mobile: Fax: E-mail: From: Jeffrey Epstein ficevacation4gmail.coml Sent: 01/28/2014 12:27 PM EST To: Tazia Smith: Paul Morris Subject: Re: Depressed options volmilin makes 'Rerunimbi weaker hedges very cheap I KCP Capital Markets III sorry, questions about what do you think about china , are silly lets pick a trade , have some back up and move. I am a trader / investor not as atrologist On Tue, Jan 28, 2014 at 12:24 PM, Tazia Smith < > wrote: Classification: For internal use only Jeffrey - Curious for your view on China. We're concerned about the defense of China's stability (even by our own Global Markets Research analyst, Jun Ma). China may be re-rating for longer-term stability as an 'emerged' market, but that our DB GEM Equity Strategist, Jean-Paul Smith, and his team may have the downside risk right in the nearer-term. Bulls point to estimates that the AUM in the trust sector only totalling Rmb 10.1 trillion (arguably too low), and that 93% of AuM in trust products could be "backed" (38% by central government, 34% by local governments, and 21% by large financial groups ). But Bears highlight that (a) bailouts by authorities won't be a sustainable solution to increasingly regular defaults, (b) they suggest the inherent moral hazard problem that will perpetuate high-risk borrowers leveraging the shadow banking system (vs. the proposed quotad bond market issuance and bank securitization channels CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 109279 CONFIDENTIAL SDNY_GM_00255463 EFTA01452331