From: Tazia Smith Sent: 3/7/2014 2:10:17 PM To: [email protected] CC: Paul Morris Subject: Re: USDCAD RKI Call Spread Valuation History - CHART (I) Classification: For internal use only Jeffrey - replying to your email: "so we had two ooportunites since inception to have 50k profit and waited until almost none.? please explain the low bids on todays mortage bond." with regard to CAD: view change. our original call was for 1.15 on usdcad, view stimulated by cad forwards starting to price in rate cuts and extended by weaker Canadian economy (esp relative to US), energy independence in the US. Russian military action in Ukraine this week and sustained elevated energy prices catalyzed the change in view and our fear was the momentum of outflows/unwinding of short cad positions would continue -- entering in more downside than upside risk in this position, wanted to get you out. (details on original, and the change, in our investment thesis/outlook below. on the RMBS: db's bid was 62.5, was just letting you know. we are open architecture, don't need to trade with db. i'm working 74 or better level. i spoke with JP, understand they have a potential buyer there, and we are working to cross. be back. Forwarded by Tana Smit From To. Date. 03O512014 08.02 AM Subject. usdcad update for JE (I) on 03'0712014 01.15 PM --- Classification: For internal use only three points 1. commodity px are much higher - bullish cad 2. CAD 2y swap rate higher (not lower as i had expected) vs US rates compared to 2mths ago - bullish cad CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 110247 CONFIDENTIAL SDNY_GM_00256431 EFTA01452919