EFTA01450659.pdf

From: Jeffrey Epstein [[email protected]) Sent: 12/20/2013 9:34:08 AM To: Paul Morris I Subject: Fwd: Japanese Equity Basket... [CI Forwarded messa ge From: Tazia Smith < Date: Wed, Dec 18, 2013 at 2:31 PM Subject: Japanese Equity Basket... [C] To: .eevacationG. mail.com Cc: Paul Morris < >, Vahe Stepanian < Classification: Confidential Jeffrey - Now that the FOMC decision is behind us (with the $10bn taper we just talked about), here is the basket of single-name Japanese equities that we put together to build on your bullish view (presently in DXJ). To incorporate your bearish yen view, we could quanto this basket like we talked about...in note form, we priced 13mos with HSBC, comes to a 95% participation eg. if the basket was up 18%, note would be up 17.1%; if basket is down 10%, note is down 9.5%. max loss 95% of principal (indicative levels only, subject to market movement, as of 12/18/13). We can look to add to your yen short position opportunistically as an alpha overlay (USDJPY now at 103.40). Let us know your thoughts, Tazia Current DB Price Sector Company Ticker Price Target % Auto Toyota 7203 JP Equity 6180 8000 29% Retail Rukaten 4755 JP Equity 1496 1710 14% Finance Resona 8308 JP Equity 506 650 28% Consumer Electronics Panasonic 6752 JP Equity 1158 1300 12% Automation Equipment Omron" 6645 JP Equity 4105 4426 8% Shipping Kawasaki Kisen 9107 JP Equity 236 280 19% Average Implied up/downside: 18% Not covered by 08. Price target reflects Bloomberg Average target. Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 106462 CONFIDENTIAL SDNY_GM_00252646 EFTA01450659