EFTA02621890

From: Paul Barrett < Sent: Friday, September 21, 2018 6:39 PM To: jeffrey E. Cc: Richard Kahn Subject: Re: JPM Prefs Jeffrey Any thoughts on the 2-10yr steepner option? Paul Paul Barrett Alpha Group Capital LLC 142 W 57 <x-apple-data-detectors://0/1> th <x-apple-data-detectors://0/1> Street, 11 <x-apple-data-detectors://0/1> th <x-apple-data-detectors://0/1> Floor, New York, NY 10019 <x-apple-data-detectors://0/1> (c) On Sep 20, 2018, at 11:37 PM, Paul Barrett wrote: Jeffrey > > JPM will likely call 1/4 of our $8MM JPM pfd position. Recall this was a fixed 7.90% coupon pfd that is now floating at Libor + 347bps. The Xela bonds we bought at 102 are now 105. Will do some more work on the Rackspace bonds as a replacement for the $2MM. EFTA_R1_01829138 EFTA02621890 Rich said you want to unwind the 2.10 curve steepner option. The deadline for tax•year 2017 deductible corporate pension contributions expired this week. As a result we could see a continued move higher in long rates especially as issuance picks up in the 4th quarter. This is a 2yr option. I think it is worth keeping for a few months. Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 MIS <image001.gif> 2 EFTA_R1_01829139 EFTA02621891