From: jeffrey E. <jeevacation@gmail.com>
Sent: Monday, May 23, 2016 11:13 AM
To: Richard Kahn
Subject: Fwd: Investment Structures
Forwarded messa =
From: Shahzad Shahbaz < >>
Date: Sun, May 22, 2016 at 6:20 AM
Subject: Inv=stment Structures
To: "jeffrey E." <jeevacation@gmail.com <mailto:jeev=cation@gmail.com»
Jeffrey,
Hope all is well.
Further to your meeting, HE Sheikh Ha=ad asked me to send you a summary of the 2 investment structures.
EQUITY PUT OPTIONS;</=>
* =C2* Put option on the worst performi=g stock in a basket
" =C2* One year structure=/span>
* =C2* Coupon guaranteed irrespective o= performance of the stocks in the basket.
* =C2* Put option strike at 70% of refe=ence/spot
* =C2* Payoff if required in stock at 7=% strike
* =C2* We identified 3 baskets based on=stocks we are comfortable to own in a downside scenario at a 30%
discount.=u>
* =C2* Basket 1; BHP Billiton, Bank of =merica, Shell, BNP Paribas
" =C2* Basket2; Credit Suisse, General =otors, BASF, General Electric
EFTA_R1_01569635
EFTA02462871
* =C2* Basket 3; Barclays, Adidas, Siem=ns, Santander
" =C2* The coupon on the above baskets =anges between 8.5 — 9.5% without any leverage.
" =C2* Obviously you can select any sto=k of your preference in the basket. Stocks with higher volatility and
less=correlation will generate a higher coupon for the basket.
FIXED INCOME;
" =C2* We identified 20 investment grad= names to place in a portfolio
* =C2* Given the uncertainty in the ene=gy, commodity and bank sectors we selected some of these names to
maximize=returns
* =C2* 5 year structure=/u>
* =C2* Exposure through 5 year CDS
* =C2* Based on leverage we are able to=generate double digit returns.
" =C2* The risk to the return is margin=calls on the leverage if the value of the portfolio declines due to spread=
widening.
" =C2* Principal risk is based on defau=t in any of the credits in the portfolio which is limited to 5% per name.<=>
I hope the above is useful. Please le= me know if you have any questions.
Best
Shahzad.
gu>
2
EFTA_R1_01569636
EFTA02462872
please note
=he information contained in this communication is confidential, may be =ttorney-client privileged, may constitute
inside information, and is in=ended only for the use of the addressee. It is the property of JEEUnauthorized use,
disclosure or copying of this communication or any p=rt thereof is strictly prohibited and may be unlawful. If you have
rece=ved this communication in error, please notify us immediately by ret=rn e-mail or by e-mail to
jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication an= all copies thereof,
including all attachments. copyright -all rights r=served
3
EFTA_R1_01569637
EFTA02462873