Subject: Follow-up on AAPL TRS C
From: Daniel Sabba <
Date: Tue, 11 Nov 2014 11:32:19 -0500
To: jeevacation@gmail com
Cc: Paul Morris
Stewart Oldfield
Vahe Stepanian <
Classification: Confidential
Jeffrey,
It was great meeting you yesterday. Per our conversation, we liaised with the
desk head in our institutional sales and trading platform for equity
derivatives and confirmed the points we discussed yesterday:
- balance sheet charges are the primary driver of the price difference you
observed between our quote and the one you received from competitors primarily
funded in USD
- lmL + 75bps for ly TRS is the financing charge DB would charge an
institutional client today (this refers to the financing charge, not
commission schedule, as other clients clients might have different commission
arrangements depending on their trading activity)
- our trading heads were not surprised competitors primarily funded in USD
were offering a financing spread 20 to 30bps lower than DB's
- the trading desk can sometimes offer improvements on names they are axed
(not the case for AAPL)
We also confirmed the following terms still work:
Notional: 1,000,000 shares of AAPL
Term: 1 year
Southern Financial receives: Total return in AAPL
Southern Financial pays: lmL + 75bps
Commissions: 3 cents per share to enter and exit the trade. There
is no additional break up fee.
Execution: We would suggest best efforts VWAP for execution
Best regards,
Daniel
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Daniel Sabba
Director I Key Client Partners
Deutsche Bank Securities Inc
Deutsche Asset & Wealth Management
345 Park Avenue, 26th Floor
New York, NY 10154
Tel. +1 212 454 0857
Mobile
Email
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