From: Daniel Sabba Sent: 6/9/2015 11:21:35 AM To: Paul Morris CC: Stewart 0ldfield Subject: RE: Idea for US equity hedging... ICI Classification: Confidential He emailed me over the weekend me saying he will call on Thursday. I reached out to Lesley and left a message. He might be out of pocket until Thursday. From: Paul Morris Sent: Tuesday, June 09, 2015 11:16 AM To: Daniel Sabba Cc: Stewart Oldfield Subject: RE: Idea for US equity hedging... [C] Classification: Confidential Did you speak to him about ways to implement his bullish views on the stocks he sent over?, he could play that various ways as you know but need to show him thx Paul Morris Managing Director Deutsche Bank Private Bank Office: Cell: From: Daniel Sabba Sent: Tuesday, June 09, 2015 11:06 AM To: jeffrey E. Cc: Paul Morris; Stewart Oldfield; Vahe Stepanian; Ariane Dwyer; Richard Kahn Subject: RE: Idea for US equity hedging... [C] Classification: Confidential Most investors are familiar with the usual negative correlation between bonds and equities, often relying in bond/equity portfolio allocations as a hedge. They believe their portfolios to be protected because they have observed equities selloffs being followed by bond rallies and vice versa. We wanted to follow-up on the hedges below in light of the recent price action. Last week we observed two trading days with sell-offs in both bonds and equities in the US. We think this is scenario worth noting given (i) the upcoming Fed lift-off, (ii) the potential reversal of a secular bull market in bonds, which started in the 1980ies, (iii) elevated equity valuations, a potential result of monetary policy stimulus. With the hedge below, an investor can get up to 5x their premium in the event of a shallow sell-off in both equities and bonds. Happy to discuss in further details. From: Daniel Sabba Sent: Wednesday, June 03, 2015 9:43 AM To: 'Jeffrey E.' Cc: Paul Morris; Stewart Oldfield; Vahe Stepanian; Ariane Dwyer; 'Richard Kahn' Subject: Idea for US equity hedging... [C] CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0074712 CONFIDENTIAL SDNY_GM_00220896 EFTA01377587