EFTA01378359

Municipal Credit > Investment Grade Texas Permanent School Fund (PSF), TX Revenue Bonds Updated: Oct 31, 2015 Trade Idea: r Buy Texas Permanent School Fund (PSF) revenue bonds. This is a name specific recommendation. The fund provides solid carry with little downside risk. Investment Rationale: r Security: The fund guarantees the debt of qualifying school districts. Texas school districts may be eligible to participate in the fund if their rating is below AAA, the district is accredited by the state, and the district's application is approved by the Commissioner of Education. r Large high-quality and liquid asset pool. ) Strong legal provisions limit the maximum amount of debt that can be backed by the fund. ) The fund's assets increased by $4.3 billion to $35 billion in FY14. r The fund's leverage is low. The ratio of guaranteed debt to the fair market value of the fund was 1.52:1 in FY14. Recommendation(s): View Trade amazon Credit MoortlyalS&P internal Cuslp Maturity Par Amount of Last Trade to Next Expected Patch Ratings Rating Selected MA Curve Issuance Maturity Buy 12 Months Texas AaaiAAAfAAA AAA/Stable 704879281 2:15)2028 $14 million +20 Ongoing Permanent School Fund (PSF), TX Revenue Bonds Deutsche Asset & Wealth Management 72 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0075528 SDNY_GM_00221712 EFTA01378359