From: Barrett, Paul S •Sl=g Sent: Tuesday, April 30, 2013 4:56 PM To: Epstein, Jeffrey ([email protected]) Cc: Ens, Amanda; Weissend, Renee E Subject: NEW PRIME HY RMBS - $2.726mm of SASC 03-10 B2 @ 100-00 (5.943% yield/3.14dum) Jeffrey We should buy these bonds to replace the sale from yesterday. Around $1MM spend. Let me know Paul US Onshore Clients — Blue Sky (U.S. State Securities Law): Please confirm Blue Sky eligibility before soliciting to a US Onshore client by entering the CUSIP into the web tool located at: http://pscppvl.amer.jpmchase.net:8080/BlueSkyPage.html and review to see if your client's state of residence is listed. If you receive 'NO SECURITY FOUND', 'NO STATES FOUND' or the security DOES NOT HAVE A CUSIP or is not USD- denominated, then please contact your SM or local compliance officer and provide the requested security and client information. Please note that a suitability review and other pre-trade procedures must still be followed. THE BOND: The SASC 2003-10 B2 is a seasoned Prime Fix 6% sub bond backed by 123 months seasoned 30yr Fix mortgages. The bond has 5.08% credit enhancement vs 10.04% 60+ delinquencies, for a 0.51x coverage ratio. In our recovery case scenario, we see this bond being callable starting in November 2013, giving the client a 5.29% yield for a 0.51 durn. THE COLLATERAL: The bond is backed by 98 Prime 30-yr Fix Rate mortgages that are 123-months seasoned and have a 47% updated LTV. The average balance of the loans is $478k . This coupled with the lower LTVs of the pool should result in lower loss severities in the future. That being said, the last defaulted/liquidated loan print in this pool occurred in March of 2012. Since then, the deal has not experienced any default experiences. EFTA_R1_00065860 EFTA01761184