EFTA00955852

From: Jeffrey Epstein leevacation@umail.com> To: "Barrett, Paul S" Subject: Re: To Do- NEW HY RMBS - 55.982mm ofCMSI 2005-7 1A4 Or S98-00 ( 6.033% yield/ +522 vs. isy/ 3.49 dum) Date: Thu. 07 Mar 2013 19:54:51 +0000 ok On Thu. Mar 7. 2013 at 2:51 PM. Barrett. Paul S wrote: Jeffrey We should buy S1MM of this bond. Would bid 97.00 which is a 6.30% yield. Let me know. Paul "'Mt OFFERS ARE SUBJECT USOnshore CHents - sky (U.S. State Securities tow): Mean confirm Blot sAyehgladity before solicit*, to a us Onshore diem by entering the CUSIP Into the web tool locatedat brzagdaigschns• nn ROSO/BlueSkagejita and review to see yyour client's stole of residence Is hated. thou receive 'NOSECURJ rF0LWd,'ILO STATES FOUND' Or the mud:yoga NOTHAVE A CUSIP arts not LISO.denominated, then please contact your SM or fond compliance officer and provide the requested security and client Wormallon. phase note that a suttatailly review and other pentode procedures mutt AM be followeed THE BOND: The CM51 2005-7 1A4 is a Prime, Seasoned, Fixed, Senior support bond backed by 89 months 30yr Fix rate mortgages. The bond has 5.53% credit enhancement vs 8.39% 60k delinquencies, for a 0.66x coverage ratio. THE COLLATERAL: The pool consists of 209 Prime 30w fixed borrowers that are 89 months seasoned with an average LTV of 79% and 731FICO score. The average balance of the loans Is $466k — this coupled with the low updated UV should result in both low CORs and Seventies. Additionally, 82% of homeowners have been 24 months perfect payers. THE STORY: For investors looking for a housing recovery play backed by seasoned Prime collateral, this bond offers a great convexity story levered to prepayments and overall homeowner performance. Please call the desk with all bids/inquiries related to this bond. X32124 HIGHLIGHTS HP! Updated Cry = 79% 82% of the borrowers have not missed a payment in the past 2 years 89 months seasoned $466k average balance °Source: Bloomberg° CMSI 2005-7 1A4 Offered @ 98.00 BOND DESCRIPTION Prepay Rate 15 CPR 18 CPR 22 CPR Cow: 172973380 Default Rate 2 rarrp 2486 ramp 122 CDR 2 tamp 2455 ramp 122 CDR 2 ramp 2455 ramp 122 CDR Original Face: 5.982.000 Default Severity 50 50 ramp 12 45 4S ramp 12 49 Current Face: 4.551.230 Delnq Rate 9 Percent 9 Percent 9 Percent Bond Type: Prime Axed 30yr Sir. Sub Delnq Advance (% of M) 100 100 100 Ratings (S&AmoodystAtch) -tCa/CCC Can No No No Current Coupon: 5.500% Yield el Base Case 6.033% Price 1) 98-00 Stress Case Base Case Recovery Case WAL g Base Case 4.39 Yield 0.811 6.033 6.101 PrincapM Window (gt Base Case Aryl 3 to Oct34 Spread over Tsy 6 522 543 Writedown % 0.00 (0.00%) Duration 3.12 3.49 3.05 Current Credit Enhancement: 5.53% WAL 4.14 4.39 3.73 60. Delinquencies 8.39 Ponape Wndew 3.122 3.49 1046 60. Delinquency Coverage 0.66x PrIOCIDNWAte0orm 21 87% 000% 000% TO4al COI131LOPS 232% 1 99% 1.72% UNOERLYWG COLLATERAL DESCRIPTOR Total Uquxlabon 12.94% 10.8.9% 930% Average Loan Balance ($.000s) 466 Loan Count 209 Mortgage Type Prime 30yr Fixed 1 MOS 3 MOS 6 MOS Wtd Avg Mortgage Coupon 5.532% CPR 31.59 19.70 17.78 Wtd Avg FICO Score 731 CDR 0.00 2.24 2.49 Wtd Avg Orig Loan-to-Value 62.01% SEV MBA Nth 51.43 41.42 HPI Ad) LTV 79.02% Weighted Avg Loan Age 89 Owner Occupied 93.94 Top 1 Geo Concentration CA36% Top 2 Geo Concentration NY 21% Top 3 Geo Concentration VA 5% Always Current (24 mos) 8127% EFTA00955852 IMPORTANT DISCLAIMER: Non.agency PM BS is a complex fixed income product and is not suitable for all investors. Please note that what desk assumptions are driven by a number of collateral and macro factors, the historical performance of a deal is not indicative of its future performance. Additionally, this message is a product of sales and trading and is not a research report. Other key risks to consider are outlined below: All investments are subject to possible loss of principal Non-Agency bonds may have limited liquidity and clients should be aware that the secondary market for mortgage-bodied securities has experienced periods of illiquidity and may do so in the future. 'liquidity means that there may not be any purchasers for your class of certificates. Although any class of certificates may experience illiquidity, it is more likely that classes that are lower in the capital structure and non.investment grade related may experience greater illiquidity than more senor, investment.grade rated classes. - High Yield lion.Agency bonds are speculative non-investment grade bonds that have higher risk of default or other adverse credit events which are appropriate for high risk investors only lion.Agency bonds are intended for clients with a minimum total net worth of $SOmm. Please make sure your client fulfills this requirement before soliciting this order. This commentary is a product el Whcorgan Global Wealth Managements Taxable Fixed Income Trading Desk and not liMargan's Research Department. the views esecessed in this trading desk commentarymaydike from those of 1PM:organ's Research Department. Any opinions mortised in thistradingdeskcommentary are sublet' to change without notice and norganis older noobligati:co to update or keep this information current. 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, viniscs, confidentiality, legal privilege. and legal entity disclaimers, available at hup2.'wwwjpatorgamcm(gagcsfdischsurcs,conil. 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. 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