EFTA01369679

From: Stewart Oldfield Sent: 6/9/2016 1151:19 AM To: Andrew King Subject: Re: indication on WTI risk reversals [CI Classification: Confidential Seems low. Where would be on a static basket of the top few positions? Can we swap to a managed account? With dynamic margin, maybe initial advance is higher. You should see if vahe has any ideas. Stewart Oldfield, CFA, CAIA Director Deutsche Bank Trust Company Americas Deutsche Bank Wealth Management 345 Park Avenue, New York, NY 10154 Tel: Mobile: blackberry Email Securities offered through Deutsche Bank Securities Inc. From: Andrew King Sent: Thursday, June 09, 2016 11:38 AM To: Stewart Oldfield Subject: FW: indication on WTI risk reversals [C] Classification: Confidential On Spectrum, max is 50% LTV or 1 turn of leverage (2x return function) From: Stewart Oldfield Sent: Wednesday, June 08, 2016 10:01 AM To: Vahe Stepanian; Richard Kahn Cc: Daniel Sabba; Joseph Dursi; Andrew King Subject: RE: indication on WTI risk reversals [C] Classification: Confidential Please pass along any feedback on the pricing if you have it. We are also working on the preferred request you sent. We have a manager that runs SMAs of preferreds for our clients that can be levered in a margin account. I think it could make sense for you to pursue a more diversified and active strategy in that space given the unique characteristics of each issue. It's likely the most straightforward way to get exposure. We just need to sort out what the margin release will be. I don't see a good way for us to recommend specific preferred issues to you, but would happily look at leverage on a basket that you select. On the structured note front, I haven't seen preferreds put into a levered note structure. If you just want levered exposure, margin or swap will be the cleanest way to do that. If you are looking for yield and aren't wed to buying preferreds, the notes structures can be useful there. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0062104 CONFIDENTIAL SDNY_GM_00208288 EFTA01369679