To: epstein, jeffrey (jeevacation@gmail.com)[epstein, jeffrey (jeevacation@gmail.com)];
jeevacation@gmail.com[jeevacation@gmail.com]

From: Jeffrey M Matusow
Sent: Thur 5/20/2010 1:08:26 PM
Subject: Update

Jeffrey,

Risk is off again this morning - Europe stock mkts down 2% and US futures down simiilarly.

Like yesterday, the Euro is holding up - 1.2350 while the rest of risk assets sell off. GBP testing the lows of the move around 1.4250.

The dividends are trading off 3 points at 88.

Swap rates also lower as money moves into USD and Treasuries - tomm we will roll one of the swaption positions which is expiring.

Your AUD/CAD position continues to run - 5% move since Apr 28th. I think we should take profit.

Ford has 1 year bonds paying Libor + 5.25% which have traded down from 102.50 to par. With Libor rising, let's buy some for a 6% yield for one year. The $SMM Ford we own matures in 9 months.

Let me know on Ford and Aud/Cad.

Jeff

Jeffrey M. Matusow

JPMorgan Private Bank 140 West 57th Street. 33rd Floor. New York. NY 10019

recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoidtng U.S. tax-related penathes.