EFTA01774387

From: Barrett, Paul S Sent: Tuesday, September 27, 2011 6:23 PM To: Jeffrey Epstein Cc: Giuffrida, David Subject: RE: Update Jeffrey =/o:p> I think we should take advan=age of the recent rally to trim some positions that either have limited up=ide (like our Barclays Pfds and Citi Pfds) or are at risk for further down=ide if Europe does not ratify the expanded EFSF. <= class=MsoNormal> Recommendation: - trim our CIT from 10MM to 5MM. Would sell $2.5mm of =oth the 2016 and the 2017 maturity. We are up on both positions - =ollar 14 our MS exposure for 1 month. This would entail buying a 14 put=and selling a 17 call. Cost around 10c/share - collar YI out Telef=nica position for 1 month. 13.50/15 collar. Cashless.</=pan> &n=sp; I will call you to discu=s. aspan> Paul Paul Barrett 1 EFTA_R1_00087765 EFTA01774387 From: =arrett, Paul S Sent: Wednesday, September 21, 2011 3:52 PM <=>To: 'Jeffrey Epstein' Subject: Update =/cliv> =span style=lont-size:11.0pt;font-family:"Calibri","sans-serif—>Hi Je=frey We are still doing some more credit work before we close the $5=M Harrah's note. <=0:p> Since the end of August the account is down=around $2.7MM (was flat at the end of Aug).This translates into -$6.=8MM for 2010 and +$4.25MM YTD for 2011. This has been due to (c=anges since End of August): &nbs=; SGD down 5% ($500K) INR down 5% ($500K =nbsp; We switched both of these forwards i=to options so we have limited downside from here on out<=p> CADJPY down 150K [We are long the 83.25 CAD Call and S=ort the 76.00 Put with a knock in at 71; spot at 76.50; knock in=7% away) Oil call down 14OK Corn down 600K ING Pfds down 200K MS Note=knocked in down 140K Telefonica note =own 300K [Stock is trading below 2009 lows; only 35% of their revenue come= from Spain; would HOLD] <=o:p> I would like to reduce further downside.<=:p> 2 EFTA_R1_00087766 EFTA01774388 I think the cheapest protection out there remains buying CDS on Asi=. For example Indonesia CDS costs 220bps. It got as wide as 1200bps in=2008. It feels like Asian credit spreads remain one of the few things th=t have not moved and could provide some cheaper tail risk if things deteri=rate further. Financial Pfds remain our largest notional exposure =around $20MM). I think we should reduce some exposure here. Would invo=ve selling some of IPM, Barclays and Citigroup. BAC and WFC was downgrad=d today and would also trim those positions. Do you have time to d=scuss? Paul </=pan> c=pan stylernifont-size:11.0ptfont-family:"Calibri","sans-serif">&=bsp; Paul Barrett =OD This email is confidential and subject to important disclaimers and c=nditions including on offers for the purchase or sale of securities, accur=cy and completeness of information, viruses, confidentiality, legal privil=ge, and legal entity disclaimers, available at http://www.jpmorgan.com=pages/disclosures/email. 3 EFTA_R1_00087767 EFTA01774389