EFTA01466669

Subject: Re: Trade Report - 1/13/14 [C] From: Paul Morris < II> Date: Mon, 13 Jan 2014 18:25:42 -0500 To: Vahe Stepanian ‹ > Classification: Confidential FMI? what is story? Original Message From: Vahe Stepanian Sent: 01/13/2014 03:37 PM EST To: "jeffrey epstein" <[email protected]> Cc: Tazia Smith; ; Paul Morris Subject: Trade Report - 1/13/14 [C] Classification: Confidential Jeffrey, Today you executed the following: Bought 25k FMI @ $27.4463 Separately, as a follow up to my e-mail on Friday - you redeemed 81,563.173 JVAIX (-$2.2mm of JP Morgan Value Advantage Mutual fund) @ $27.17. Thank you, Vahe (Embedded image moved to file: pic12124.gif) Vahe Stepanian Associate I Wealth Investment Coverage Deutsche Bank Securities Inc. Deutsche Asset & Wealth Management EFTA01466669 From: Tazia Smith/db/- dbcom@DBAMERICAS To: "jeffrey epstein" <[email protected]>, Cc: "Vahe Stepanian" Date: PM Subject: [C] 01/13/2014 02:03 Re: PDVSA chart + USDJPY Trade Classification: Confidential Working 20pct of volume given liquidity. let us know if you want to be more aggressive. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management EFTA01466670 From: Tazia Smith Sent: 01/13/2014 01:57 PM EST To: "jeffrey epstein" <[email protected]> Cc: Vahe Stepanian Subject: Re: PDVSA chart + USDJPY Trade [C] Classification: Confidential On it Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management E-mail: From: Jeffrey Epstein [[email protected]] Sent: 01/13/2014 02:55 PM AST To: Tazia Smith Subject: Re: PDVSA chart + USDJPY Trade [C] buy 25 000 . foundation medicine On Mon, Jan 13, 2014 at 10:29 AM, Tazia Smith ct > wrote: Classification: Confidential EFTA01466671 Jeffrey - Any thoughts on the $Y trade idea? Separately, we did not have a chance to discuss specifically, but consider selling: OHYFX (JPM high yield mutual fund) and DAG (DB double levered Agriculture ETN) Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management E-mail: From: Jeffrey Epstein [[email protected]] Sent: 01/13/2014 07:49 AM AST To: Vinit Sahni Cc: Tazia Smith; "Nav Gupta (DEUTSCHE ASSET MANAG)" >; Paul Morris; Vahe Stepanian Subject: Re: PDVSA chart + USDJPY Trade [C] thanks , lets keep On Mon, Jan 13, 2014 at 7:47 AM, Vinit Sahni a wrote: Classification: Confidential This attached image shows the current pricing on the curve, which is slightly weaker than it was in early December. I have also added the term structure of PDVSA and VENZ sovereign bonds, which gives us some relative value across the curve Bouts of volatility will likely remain an issue and therefore it will trade like a short tail risk trade. However, given that access to dollars remains key for Venezuela, we should expect the government to do whatever they can to avoid a problem servicing these bonds (or even the perception of the same). They do have a heavy amortization schedule in 2014 and 2015. EFTA01466672 Vinit Sahni Managing Director I Global Head - Professional Client Group & Key Client Partners Capital Markets Group Deutsche Asset & Wealth Management lEN London, United Kingdom Email From Tazia Smith/db/- dbcom@DBAMERICAS To: "jeffrey epstein" <[email protected]>, Cc: "Vinit Sahni" "Nay Gupta (DEUTSCHE ASSET MANAG)" Date 12/01/2014 22:52 Subj Re: PDVSA chart + USDJPY Trade [C] EFTA01466673 ect: Classification: Confidential Looping in Vinit here as he was recently involved with a large offering in the pdvsa credit and may have some take-aways. My view is the bonds are money good in 2015, as of now, but you are not looking for yield carry (as discussed), and the risks of restructuring and near-term downside due to politics specific to venezuela and chatter around EM assets at large are likely greater than implied by the bonds' current —85 levels; would use Friday's rally to sell (particularly if you believe it was rates driven vs credit). For what it's worth, we've found Latam family offices that are very familiar the credit (and do like carry) are fully loaded and do not have incremental demand. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management From: Jeffrey Epstein [[email protected]] Sent: 01/12/2014 04:56 PM AST To: Tazia Smith Subject: Re: PVDSA chart + USDJPY Trade [C] EFTA01466674 do you think money good in 15 On Sun, Jan 12, 2014 at 4:38 PM, Tazia Smith e > wrote: Classification: Confidential Jeffrey: Please find the chart of PDVSA 5% 10/28/15 price history below, as well as a description of the USDJPY 10yr trade that we briefly discussed on Friday. Speak with you soon, Tazia (Embedded image moved to file: pic21446.gif) Used with permission of Bloomberg Finance LP, 1/10/14 Forwarded by Tazia Smith/db/dbcom on 01/12/2014 03:29 PM From: Nav Gupta/db/- dbcom@DBEMEA To: Tazia Smith/db/- dbcom@DBAMERICAS, Date: AM 01/10/2014 08:21 Subject: SY [I] EFTA01466675 Classification: For internal use only Long $Y Call Options. We like long expiry options to benefit from the present dislocation between interest rates and volatility Deutsche Bank FX Strategists are calling for USDJPY of 115 by year-end 2014, and 120 by year-end 2015. See DB FX Blueprint published 1/9/14, and note that #2 of the top 10 themes of 2014 (p. 5-6) revolves around extended weakness in the Japanese Yen vs. USD. Consider a lOyear expiry $Y call option struck at 85 (spot fx 105, forward fx 77.70). Price 4.7% of USD notional This option has four notable characteristics If $Y stays at these levels the option decays positively by approx 15-20% per year If $Y trades 90.00 at any time (arguably a scenario in which the option is no longer wanted) the option "knocks-out" and becomes worthless. While $Y might decline to 90, our quantitative analysis indicates the probability of such a decline is significantly (double?) overpriced by the options market The premium of the option is quite sensitive to moves in $Y spot - which is atypical for a lOyear option. This also results from the knockout feature. This means if $Y moves quickly by 5% the option increases / decreases in value by almost half, so If $Y rises to 110 or 115 the option can easily be unwound to monetize the profit The option costs roughly 1/3rd compared to the vanilla 85 strike call Maximum loss is premium paid Nav Gupta Managing Director Deutsche Bank AG, Filiale London Deutsche Asset & Wealth Management ners Hall), EC2N lEN London, United Kingdom Any proposed ideas are being delivered to you by the DeAWM Key Client Partners ("KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / EFTA01466676 or its affiliates ("DB"). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID), who understand the strategy, characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Tazia Smith Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for EFTA01466677 the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. Any unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to http://www.db.com/en/content/eu_disclosures.htm for additional EU corporate and regulatory disclosures. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. EFTA01466678 Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA01466679