EFTA02424257

To: epstein, Jeffrey ([email protected])[epstein, Jeffrey ([email protected])]: [email protected][[email protected]] From: Jeffrey M Matusow Sent: Tue 5/18/2010 7:27:05 PM Subject: Euro at 1.22 Germany banning naked short selling and naked short sovereign CDS positions. GBP trading down to 1.43 Gold bounced from this morning's levels back above $1225. The index I mentioned this morning - iTraxx Europe - consists of 125 large European corporates. We should buy this as a hedge to the Dividend position. It costs 1.2% a year. If Europe blows up it will trade higher to offset a fall in the Dividends. If Europe ends up ok and the iTraxx Europe returns to pre-crisis levels, you likely lose 50bps - but the Dividend position will be fine. let's discuss. Jeff Jeffrey M. Matusow JPMorgan Private Bank 140 West 57th Street. 33rd Floor. New York, NY 10019 IRS Circular 230 Disclosure. JPMorgan Chase & Co and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used. and cannot be used. in connection with the promotion. marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. EFTA_R1_01491853 EFTA02424257