| Field | Value |
|---|---|
| From | jeffrey E. <jeevacation@gmail.com> |
| Sent | Sunday, May 22, 2016 10:23 AM |
| To | Shahzad Shahbaz |
| Subject | Re: Investment Structures |

Questions from Jeffrey (top of email)
- In your fixed income basket, which stocks did you choose?
- Which banks have you found, or person at bank, that you think provides the best execution and flexibility?
- A0 Sk Hamad said that one of the banks might take the first two stock loss?
- Do you currently invest in Tech? or tech funds? med tech, bio tech, cyber etc.?

Key email content — Equity Put Options
- HE Sheikh Ha#ad asked to send a summary of 2 investment structures.
- Structure: Put option on the worst-performing stock in a basket.
- One-year structure.
- Coupon guaranteed irrespective of performance of the stocks in the basket.
- Put option strike at 70% of reference/spot.
- Payoff can be delivered in stock at 70% strike if required.
- Identified 3 baskets based on stocks comfortable to own in a downside scenario at a 30% discount.

Baskets (listed)
- Basket 1: BHP Billiton, Bank of America, Shell, BNP Paribas
- Basket 2: Credit Suisse, General Motors, BASF, General Electric

* =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.

=/u>

## please =ote

The information contained in this communication is confiden=ial, may be attorney-client privileged, may constitute inside informati=n, and is intended only for the use of the addressee. It is the propert= of JEE Unauthorized use, disclosure or copying of this communica=ion or any part thereof is strictly prohibited and may be unlawful. If =ou have received this communication in error, please notify us immediat=ly by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail=com> , and destroy this comm=nication and all copies thereof, including all attachments. copyright -=11 rights reserved