FW: TO Do and Iran
Jeffrey
I think we should buy $1MM of the Ally Preferreds. This is the former GMAC. ABS continues to tighten which should help their business. Right now the Allys yield 11% ytw
On IRAN:
You could buy a $115 WTI call option that is contingent on the SP500 being below 1260 at maturity. Cost is 1.350% for 6 months.
Buy credit default protection on Saudi Arabia for 145bps.
Will call to discuss
Paul
Paul Barrett, CFA
Managing Director
Global Investment Opportunities Group
JPMorgan Private Bank
Jeffrey
We should buy another $2MM of the Ally Pfds. We bought some last week (up 2% since then) but it sounds like they could rid themselves of the Rescap liabilities which could be good for the pfds.
We should also take profits on the remaining 2.5MM SGD forward. It has had a nice run and it seems to be losing some steam.
Our CIT bonds in Hazetrust will be called at par in a few weeks. Will need to find a replacement when it happens.
Portfolio is up 4.75% YTD. I feel like we are underweight equity risk. I would like to add $SMM of single name equities and simultaneously buy a) $SMM of a 6 month 95% SP500 put with a 1020 knock out. The vol skew is making this very attractive right now. Cost is 1.65% and b) Buy 5MM of a 1350/1250 Put spread and sell a 1425 call.
Paul
Paul Barrett, CFA
Managing Director
Global Investment Opportunities Group
JPMorgan Private Bank
320 Park Avenue, 14th Floor, New York, NY 10022