From: Jeffrey Epstein <[email protected]>

From: Jeffrey Epstein <[email protected]> To: "Barrett, Paul S" Subject: Re: To Do: BRL step-up note - closing today Date: Tue, 12 Mar 2013 16:43:03 +0000 Ok On Tuesday, March 12, 2013, Barrett, Paul S wrote: Hi Jeffrey Left you a vm. I do think we should put some money into this note. Being long brl Into the World Cup makes sense. Domestic inflation should allow them to allow minor fx appreciation. And they will likely hike 150bps this year. We don't have much Latam fx exposure. Our MXN is working well. I think we should do lmm in southern trust. Paul Sent with Good Original Message----- From: Ens, Amanda Sent: Tuesday, March 12, 2013 09:39 AM Eastern Standard Time To: Jeffrey Epstein Cc: Barrett, Paul S Subject: To Do: BRL step-up note - closing today Jeffrey, With the Brazilian policy rate at 7.25% and rate hikes increasingly likely in an effort to stem inflation, we remain structurally bullish on the Brazilian real due to the attractive carry. Paul recommends you invest $2mm in this BRL currency note. HSBC-issued BRL Step-up Note Tenor: 53 weeks At expiry barrier protection: 15% ATMS strike coupon: 5% EFTA00956348 Step-Up strike: 3% OTMS Step-up coupon: 23.5% Max gain: 28.5% • If BRL performance is between -15% and 0%, you receive your principal back • If BRL performance is between 0% and 3%, +5% return • If BRL is 3% stronger at expiry, +28.5% return • If BRL performance is weaker than -15%,1-for-1 loss from initial spot More drivers of our constructive BRL view: Brazil continues to have an inflationary problem, with y/y inflation above 6% and still rising. Even though many analysts expect inflationary pressure to recede as the year progresses (JPM IB expects y/y inflation to fall to 5.6% by year end), the stickiness of inflation has raised expectations that a tightening cycle is coming. Consequently, it was the comments accompanying the decision to keep rates unchanged at 7.25% that mattered for markets last week. The statement duly delivered. The reference to maintaining rates constant for a prolonged period of time was dropped and the committee This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at 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 EFTA00956349