To: Jeffrey E.Ijeevacationiagmail.comj From: Vincenzo lozzo Sent Sun 8/10/2014 12:33:51 PM Subject Re: A note on shorting Well but: I) if you short just a single company that raise a gigantic red flag on you the moment the company is hacked and even then the company only represents x% of a tranche - so it's a lot of work for a very tiny risk premium 2) if you short the entire tranchc and more than Y companies arc breached that's likely very suspicious as well Besides if Fm willing to take the other side of the bet on the derivative, why not buy the bond in the first place? In any case, I've read a lot of stuff yesterday. I think that today if we manage to, I should walk you trough how bitcoin works, that might be useful for your talk as well, and also ask you a couple of questions - since a lot of currencies seems very fragile and I don't get why people aren't making a killing on them (the krone being one example) Sent from my Iphone On 09/ago/2014, at 21:22, "Jeffrey E." <jeevacationagmail.com> wrote: no one knows the other side it just looks like a sell and they are buyers? On Sat, Aug 9, 2014 at 8:00 PM, Vincenzo Iozzo ote: Sony for the email flood.. While studying I realized I forgot a big counterargument to your derivative on the cyber stuff: even if you want to short the bond trough a derivative, who's going to take the other side of the bet? Everyone is/should be aware of the moral hazard there I think Not saying that invalidates your thesis on the fact that this can't work because it's hard for investors to understand - just saying that I don't think shorting it is a risk Anyway, PII go back to my studies :) Sent from my Iphone EFTA_R1_00351467 EFTA01913382 please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@smail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00351468 EFTA01913383