EFTA01139891

From: Vahe Stepanian To: Jeffrey Epstein <jeeyacation@gmail.com> Cc: Paul Morris Vinit Sahni Nay Gu to , Raphael Zagury Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting [C] Date: Tue, 14 Jan 2014 14:41:41 +0000 Inline-Images: unnamed; unnamed(1); unnamed(2); unnamed(3); unnamed(4); unnamed(5); unnamed(6); unnamed(7); unnamed(8); unnamed(9); unnamed(10); unnamed(11); unnamed(12); unnamed(13); unnamed(14); unnamed(15) Classification: Confidential Good Morning Jeffrey, Today we executed the following: Bought 380k MBONO 7.75% 11/13/2042 @ 7.52% (102.695) Bought MXN 39,253,441.02 @ 13.0975 (USD $2,997,017.83) Please let us know if you have any questions. Thank you, Vahe Vahe Stepanian Associate I Wealth Investment Coverage Deutsche Bank Securities Inc. Deutsche Asset 8 Wealth Management 345 Park Avenue - 26th Floor New York. NY 10154-0004 Tel. Fax Mob Email From: Vinit SahnWdb/dbcom©DBEMEA To: Jeffrey Epstein <jeevacabon@gmailcorriN§DEUBAINT. Cc: Raphael Zagury/db/dbcorn©DBAMERICAS. Vahe Stepanianklb/dbcom@DBAmericas. Paul Monisklbklbcom@DBAMERICAS Date: 01/14/2014 08:54 AM Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting [CI Classification: Confidential Jeffrey - tried to reach u. Its trading around 7.50% yield, bounces around. As soon as we hear from u, we'll execute and get the best level. EFTA01139891 Vinit Sahni Managing Director I Global Head - Professional Client Group & Key Client Partners Capital Markets Group Deutsche Asset & Wealth Management 1051108 Old Broad St (Pinners Hall). EC2N 1EN London. United Kingdom Mobile Teia +4 Email Any proposed ideas are being delivered to you by the DeAWM Key Client Partners (*KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates ("DIY). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Par&O-Kirr Pee/Orin. From: Jeffrey Epstein leevacation@gmail.com> To: Vinit Sahni/db/dbcom@DBEMEA. Date: 14/01/2014 12:01 Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting M it was a more general question On Tue, Jan 14, 2014 at 7:57 AM, Vinit Sahni - wrote: Classification: Confidential as its local currency all the liquidity is in NY hours so it won't hurt. As soon as they get some liquidity will shoot it across. Vinit Sahni Managing Director I Global Head - Professional Client Group & Key Client Partners Capital Markets Group Deutsche Asset & Wealth Management 1051108 Old Broad St (Pinners Hall). EC2N 1EN London. United Kingdom Tel. Mobill Email I SM Any proposed ideas are being delivered to you by the DeAWM Key Client Partners (*KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates ("DB- ). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. EFTA01139892 PAnio-whyPeepan From: Jeffrey Epstein itgacitgagmacgm> To: Vinit Sahni/db/dtcom@DBEMEA. Paul Morris/db/dbcom@DBAMERICAS. Tazia Smith/db/dbccrn@DBAMERICAS. Dale: 14/01/2014 11:39 Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting M can we set up an account based in london , so i do not have to wait for ny to open? On Tue, Jan 14, 2014 at 7:00 AM, Vinit Sahni > wrote: Classification: Confidential got it back to u as soon as NY opens up Vinit Sahni Managing Director I Global Head - Professional Client Group 8 Key Client Partners Capital Markets Group Deutsche Asset 8 Wealth Management 105/108 Old Broad St (Pinners Hall). EC2N 1EN London. United Kingdom Tel. Mobil l Email Any proposed ideas are being delivered to you by the DeAWM Key Client Partners (*KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates ("DE'). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investcrs (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Pant,* gertem. From: Jeffrey Epstein <jeevacation@gmail.com> To: Vinit Sahni/db/dbcom@DBEMEA. Dale: 14/01/2014 10:55 Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting [CI usd 3m bonds EFTA01139893 On Tue, Jan 14, 2014 at 6:41 AM, Vinit Sahni > wrote: Classification: Confidential Jeffrey - sorry, to clarify is it 3m USD worth of MXN bonds or 3m MXN, as its a local currency bond. As soon as NY gets in will get a price on the MBONO 7.75% 11/13/2042 and ping u as and when our view on rates or the currency changes will keep u updated, as here u have risk on both components unlike the PDVSA where the bond was denominated in USDs. Best Vinit Vinit Sahni Managing Director I Global Head - Professional Client Group 8 Key Client Partners Capital Markets Group Deutsche Asset 8 Wealth Management 1051108 Old Broad St (Pinners Hall), EC2N 1EN London. United Kingdom Tel. + Mobil Email Any proposed ideas are being delivered to you by the DeAWM Key Client Partners (*KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and! or its affiliates ("Dr). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Panio-1,-frPeiforni. From: Jeffrey Epstein <jaevacatica(Wgmaitcom> To: Vinit Sahni/db/dbcom©DBEMEA, Date: 14/01/2014 10:18 Subject: Re: Jeffrey - Mexico -> MBONO 30y look interesting ICI agreed lets do 3m On Tue. Jan 14, 2014 at 4:23 AM, Vinit Sahni > wrote: Classification: Confidential Jeffrey - was looking for value in the EM space, post the PDVSA analysis, started looking at Mexico... here is a trade I think makes sense -> buying MBONO 30y unhedged At around 7.5% yield, inflation probably in the 3-4% in the foreseeable future, and USD/MXN likely stable or EFTA01139894 stronger in real (deflated) terms, I think it is good value. The curve is steep. If you look at 10Y10Y UST and 10Y10Y MXN yields, the spread is above 500bp . Say inflation differential is 100bp higher in Mex and credit diff is 100bp (10Y CDS is about 100bp higher in Mexico although Mex has much better debt dyn), this still leaves about 300bp of cushion for real depreciation per year...ln sum, it seems good value near term mark to market risk is slower pace of implementation of energy reform and a selloff in USTs happy to discuss further if u find interesting... IIBONO 7 3.4 11/13/42 +.000 /-- As of 18 Apr Op -- Hi -- Lo Prey 103.438 DB MBOHO 7 14 11/42 95) Save As 90 Actions - 97) Edit - 90 Table Yield Chart 04/19/2012 01/14/2014 Mid VIM BGN Line II)Compare P1ov. .o.vgs --- No Lower Chart EtiiPI 1D 3D IM 611 YTD 11 5Y M Daily • N Secuntylitity M Evert O 0.8 030 *6500 ►6.000 I I Mid Yield To Maturity 7.504 T High on 12/04/13 7.836 5.500 4- Average 6.740 1 Low on 05/02/13 5.313 Jun Sep Dec Mar Jun Sep Dec 2012 I 2013 12014 Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 gAMO Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2014 Bloomberg Finance SN 812823 EST GMT-5.00 H376-306-2 14-Jan-2014 03:04:41 CNYMXN chart courtesy Nav Gupta (shows relative value in Labour cost between China and Mexico) EFTA01139895 CNYMXN OWL 2.172 µ BBLC 2.171 / 2.172 BBLC At 3:13 Op 2.159 Hi 2.172 ic 2.156 Close 2.159 Value 01/16/14 CI NI•N I Cl•IPL Curn - Save As 99 Actions - Table Line Chart 01/14/2005 01/14/2014 Last Price CMPL Line llI C ompare No Lower Chart Man ID 3D DI 611 YTD IT SY Max Daily • 6%! security/fitly vert 0 il U Last Price 2.172 T High on 06/01/12 2.260 ii- Average 1.745 1 Low on 07/18/05 1.278 •• 1.800 L1.600 0.1.400 ,.1.200 2005 2006 2007 2008 2009 2010 2011 2012 2013 201 Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S- 1 212 318 2000 Copyright 2014 Bloomberg Finance SH 812823 EST GMT-5:00 H376-306-2 14-Jan-2014 03:13:52 Vinit Sahni Managing Director I Global Head - Professional Client Group & Key Client Partners Capital Markets Group Deutsche Asset 8 Wealth Management 1051108 Old Broad St (Pinners Hall). EC2N lEN London. United Kingdom Tel. Mobil Email Petn40-1,-fa Perfarm. Any proposed ideas are being delivered to you by the DeAWM Key Client Partners (*KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates ("DE'). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. From: Jeffrey Epstein <jeevacalion@gmail.com> To: Vinit Sahnifdb/dbcom@DBEMEA. EFTA01139896 Cc: Tazia Smithldb/dbcom@DBAMERICAS. "Nay Gupta (DEUTSCHE ASSET MANAGE Paul Monisidb/dbcom®DBAMERICAS. Vahe Stepanian/db/dbcom@DBAmeticas Date: 13/01/2014 11:50 Subject: Re: PDVSA chart + USDJPY Trade [CI thanks , lets keep On Mon, Jan 13, 2014 at 7:47 AM, Vinit Sahni < > wrote: Classification: Confidential This attached image shows the current pricing on the curve, which is slightly weaker than it was in early December. I have also added the term structure of PDVSA and VENZ sovereign bonds, which gives us some relative value across the curve Bouts of volatility will likely remain an issue and therefore it will trade like a short tail risk trade. However, given that access to dollars remains key for Venezuela, we should expect the government to do whatever they can to avoid a problem servicing these bonds (or even the perception of the same). They do have a heavy amortization schedule in 2014 and 2015. Vinit Sahni Managing Director I Global Head - Professional Client Group & Key Client Partners Capital Markets Group Deutsche Asset & Wealth Management 10511 ners Hall). EC2N 1EN London. United Kingdom Tel. + Mobil Email Pcdreitn4rr Peep-rm. From: Tazia Smith/db/dbcom@DBAMERICAS To: "Jeffrey epstein" <joevacation@gEggS, Cc: e>. *V "Nay Gupta (DEUTSCHE ASSET MANAGE < Date: 12(01/2014 22:52 SuLec:,: Re: PDVSA chart • USDJPY Trade (C) EFTA01139897 Classification: Confidential Looping in Vinit here as he was recently involved with a large offering in the pdvsa credit and may have some take-aways. My view is the bonds are money good in 2015, as of now, but you are not looking for yield carry (as discussed), and the risks of restructuring and near-term downside due to politics specific to venezuela and chatter around EM assets at large are likely greater than implied by the bonds' current —85 levels; would use Friday's rally to sell (particularly if you believe it was rates driven vs credit). For what it's worth, we've found Latam family offices that are very familiar the credit (and do like carry) are fully loaded and do not have incremental demand. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154 Tel: Mobil Fax: (LID E-mail: From: Jeffrey Epstein [jeevacation®gmail.com] Sent: 01/12/2014 04:56 PM AST To: Tazia Smith Subject: Re: PVDSA chart + USDJPY Trade [C] do you think money good in 15 On Sun, Jan 12, 2014 at 4:38 PM, Tazia Smith < wrote: Classification: Confidential Jeffrey: Please find the chart of PDVSA 5% 10128/15 price history below, as well as a description of the USDJPY 10yr trade that we briefly discussed on Friday. Speak with you soon. Tazia EFTA01139898 PDVSA 5 10/28/15 $ 185.500 +1.500 1411.7 bp vs T 0.250 12/31/2015 As of 10 Jan Vol 989.011 0 14.489 TRAC 99Savr ctoft a all IL Ox-cure np. A.,: PI um II S'i Max Daily • gt Securtry/Se.dv rl Event O ± Track Annetate Neiws O, Zoom Used with permission of Bloomberg Finance LP, 1/10/14 Forwarded by Tazia Smith/db/dbcom on 01/12/2014 03:29 PM -- From: Nay Gupta/db/dbcorn©DBEMEA To: Tazia Smith/dbidbcom@DBAMERICAS. Date: 01/10/2014 08:21 AM Subject: SY (I] Classification: For internal use only Long SY Call Options. We like long expiry options to benefit from the present dislocation between interest rates and volatility Deutsche Bank FX Strategists are calling for USDJPY of 115 by year-end 2014. and 120 by year-end 2015. See DB FX Blueprint published 1(9114. and note that #2 of the top 10 themes of 2014 (p. 5-6) revolves around extended weakness in the Japanese Yen vs. USD. Consider a 10year expiry SY call option struck at 85 (spot fx 105. forward fx 77.70). Price 4.7% of USD notional This option has four notable characteristics • If SY slays at these levels the option decays positively by approx 15-20% per year • If SY trades 90.00 at any tine (arguably a scenario in which the option is no longer wanted) the option "knrckg-our and becomes worthless. While SY might decline to 90. our quantitative analysis indicates the probability of such a decline is significantly (double?) overpriced by the options market • The premium of the option is quite sensitive to moves in $Y spot - which is atypical for a 10year option. This also results Iron the knockout feature. This means if SY moves quickly by 5% the option increases / decreases in value by almost half. so If SY rises to 110 or 115 the option can easily be unwound to monetize the profit • The option costs roughly 1/3rd compared to the vanilla 85 strike call • Maximum loss is premium paid EFTA01139899 Nav Gupta Managing Director Deutsche Bank AG, Fatale London Deutsche Asset & Wealth Management 1051108 Old Broad St (Pinners Hall), EC2N 1EN London. United Kingdom Tel. Mobile Email 11110 Any proposed ideas are being delivered to you by the DeAWM Key Client Partners ("KCP') London desk for discussion purposes only. and do not create any legally binding obligation on the part of Deutsche Bank AG and or its affiliates ("Dr). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy, characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Tazia Smith Director Key Client Partners -US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue, 26th Floor New York. NV 10154 Tel. + Fax Li Mobil Email This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** 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 EFTA01139900 return e-mail or by e-mail to jeevacation®gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. My unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to http://www.db.com/en/content/eu disclosures.htm for additional EU corporate and regulatory disclosures. *********************************************************** 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 tojtevacation urnail corn and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. My unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to fillp://www.db.comien/content/eu disclosures.htm for additional EU corporate and regulatory disclosures. ***** ******* ***** ********************** ************* ******* 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 EFTA01139901 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 jeraacation@gmallsam, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. My unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to http://www.db.com/en/content/eu disclosures.htm for additional EU corporate and regulatory disclosures. ***** ************************ ************* ***************** 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 jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. My unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to filip://www rib com/en/r.nntent/eujfiscloseres FAN for additional EU corporate and regulatory disclosures. EFTA01139902 ***************** *********************** ******************* 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 jeevacation®gmail.com and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. Any unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to http://www.db.com/en/contentleu disclosures.htrrk for additional EU corporate and regulatory disclosures. *********************************************************** 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 jetQL@I gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01139903