EFTA01369749

From: Richard Kahn Sent: 6/10/2016 5:06:12 PM To: Andrew King [a CC: Stewart Oldfie Vahe Ste•anian [email protected] Daniel Sabba Joseph Dursi I Subject: Re: indication on WTI risk reversals thank you for all your work on this been distracted on a project so lets discuss monday thanks Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel fax cell On Jun 9, 2016, at 2:14 PM, Andrew King a wrote: Rich, First, as a quick introduction, I'm an investment specialist on Stew Oldfield's team. I look forward to working with you. I've attached a factsheet for Spectrum, the SMA manager of preferred equities Stew referenced. We took a look at the loan-to-value available on a portfolio of preferreds (including the SMA portfolio) and unfortunately, due to Reg-T, we'd be limited to a 50% LTV (2x leverage) using a traditional margin facility. We're exploring solutions using a total return swap to provide potentially greater leverage and will be back to you as soon as possible with some ideas. Please let us know if you have any questions. My contact info. is listed below. Best regards, Andrew King <i mage001.gi Andrew King, CFA Vice President I Investment Solutions Group Deutsche Bank Securities Inc. Deutsche Asset & Wealth Management 345 Park Avenue, New York, NY 10154 Tel. Fax CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0062195 CONFIDENTIAL SDNY_GM_00208379 EFTA01369749