EFTA02460065

From: labor Y. Sent: Wednesday, June 8, 2016 9:36 AM To: Jeffrey E. Subject: Re: Thank you. Not quite sure, but we may come to NY after 10 days.=C240 Will discuss more on this then and also the Marrakech plot. O= Monday, June 6, 2016, Jeffrey E. <[email protected] <mailto:jeevacation@gmail.=om» wrote: - =C24> Credit lines at many banks floor the floating index at 0%. With 1-month Euribor fixing at -0.25%, the benefit of negativ= interest rates can be used to your advantage. - =C2* You can bypass the floor by borrowing in USD at 1-month Libor (plus a spread) and using a cross- currency swap to create a synthetic EUR loan. The cross currency basis swap pays USD Libor and you pay -0.35% (so 35bps actually get paid to you as it is negative). This allows you to not only capture the benefit of negative rates but also cheapen the funding bythe cross-currency differential in the market. theerfore - =C240 By creating a synthetic EUR loan via cross-currency swaps, you can reduce funding costs of Sheik Hamad by roughly 60 bps for 2 year= (combination of savings from negative Euribor rates and negative cross-currency basis). =C24> please note The information co=tained in this communication is confidential, may be attorney-client pr=vileged, may constitute inside information, and is intended only for JEE Unauthorized use= disclosure or copying of this communication or any part thereof is str=ctly prohibited and may be unlawful. If you have received this commu=ication in error, please notify us immediately by return e-mail or by e=mail to [email protected] <javascript:_e(%7B%7D,Icvml',1jeevacation@gm=il.comi);> , and destroy=this communication and all copies thereof, EFTA_R1_01565465 EFTA02460065 including all attachments. c=pyright -all rights reserved 2 EFTA_R1_01565466 EFTA02460066