EFTA01420555.pdf

Subject: Re: Southern Financial - IA Request [I] From: Stewart Oldfield Date: Wed, 29 Jun 2016 08:28:07 -0400 To: Vahe Stepanian Cc: Daniel Sabb Andrew King Classification: For Internal Use Only So is is same for all names? Stewart Oldfield, CFA, CAIA Director Deutsche Bank Trust Company Americas Deutsche Bank Wealth Management 345 P w York, NY 10154 Tel: Mobile: blackberry Email: Securities offered through Deutsche Bank Securities Inc. From: Vahe Stepanian Sent: Wednesday, June 29, 2016 08:23 AM To: Stewart Oldfield Cc: Daniel Sabba; Andrew King Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Stew, Please see below from the Global Markets team - take a look and let us know if you have questions. We will send to Rich Kahn shortly. Thank you, Vahe EFTA01420555 Following a lot of analysis, we can't do this swap on the basket as it isn't operationally feasible, however, this can be done as a series of single name total returns swaps. For the client to purchase 1-year swaps with bilateral break rights at any time, we can offer: lmL+150bps (Yellow highlighted names) lmL+140bps (Green highlighted names) Given the bid/ask and liquidity profile of these names getting into and out of these is going to be a challenge, thus we would suggest that we trade into these at about 15-20% adv until complete, which could take several days. Preferred Equity Information Issuer Name Preferred Equity Symbol Cusip BB&T CORPORATION bbt h pfd 54937875 CAPITAL ONE FINANCIAL CO cof d pfd EFTA01420556  14040H709 CAPITAL ONE FINANCIAL CO cof f pfd 14040H881 CHARLES SCHWAB CORP schw c Pfd 808513402 CHARLES SCHWAB CORP schw d Pfd 808513600 DIGITAL REALTY TRUST INC Dlr g Pfd 253868889 DTE ENERGY CO dtj pfd 233331800 EBAY INC ebayl Pfd 278642202 GENERAL ELECTRIC CO gek pfd 369622394 EFTA01420557 JPMORGAN CHASE & CO 3PM f Pfd 48127R461 JPMORGAN CHASE & CO 3PM h Pfd 48127V827 KKR KRPPP pfd 48248M300 NEXTERA ENERGY CAPITAL nee j Pfd 65339K886 NEXTERA ENERGY CAPITAL nee k Pfd 65339K100 PITNEY BOWES PBI B pfd 724479506 PUBLIC STORAGE psa b pfd 74460W776 PUBLIC STORAGE EFTA01420558  psa c pfd 74460W750 STANLEY BLACK & DECKER INC SWJ pfd 854502705 STATE STREET CORP stt e pfd 857477889 STATE STREET CORP stt d pfd 857477608 US BANCORP usb m pfd 902973833 VERIZON COMMUNICATIONS vza pfd 92343V302 WELLS FARGO & COMPANY wfc v pfd 94988U730 WELLS FARGO & COMPANY wfc r pfd EFTA01420559 949746465 From: Vahe Stepanian Sent: Tuesday, June 28, 2016 3:19 PM To: Stewart Oldfield Cc: Daniel Sabba; Andrew King Subject: FW: Southern Financial - IA Request [I] Classification: For internal use only Stew — quick update on below, still waiting on pricing from our Global Markets colleagues for Southern Financial's pref basket. See below. The IA requirement is 40% as requested by CRM. Will be back to you once I have pricing — I expect to have shortly. Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 1:19 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Ok thanks. I'm satisfied on our end. EFTA01420560 Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 1:17 PM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Andrew — just in the brokerage accts there are > $100mm in assets. Thank you, Vahe EPSTEIN N4G023804 SOUTHERN FINANCIAL LLC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 98,610,505.00 EPSTEIN N4G024943 THE HAZE TRUST UAD 02/09/99 JEFFREY EPSTEIN & DARREN K INDYKE TTEES 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 41,108,732.17 EPSTEIN N4G023812 EFTA01420561  SOUTHERN TRUST COMPANY INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,668,026.80 EPSTEIN N4G024935 JEEPERS INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,108,576.30 EPSTEIN N4G024950 J EPSTEIN VIRGIN ISLANDS FOUNDATION INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 1,367,641.87 EPSTEIN N4G024968 JEFFREY EPSTEIN 6100 RED HOOK QTRS STE B-3 ST THOMAS VI 00802-1348 667,218.67 From: Andrew Xu Sent: Tuesday, June 28, 2016 1:04 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only EFTA01420562 I'm ok with the 3/31. Do we have a bank / brokerage statement? How much assets they have with us? If they have a lot I don't need an updated one. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 11:21 AM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Thanks Andrew. For the caveat - we received updated financials which were sent over to your team as of 3/31/16 (Q1) - will forward under separate cover. Per the agreed ISDA amendment (attached), the client has 10 business days from the end of the relevant calendar quarter to deliver updated financials. Let us know if the caveat still applies? As of now the client has enough cash in house to meet the IA requirement — we can revisit if he wishes to post other assets. Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 11:00 AM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] EFTA01420563 Classification: For internal use only Hi Vahe, We can do 40% IM for this trade. Caveat, we need updated financials and brokerage statements. Additionally we need to discuss what type of collateral they are going to post. If non standard we should talk now, but if standard(cash, munis, treasuries) we have no issues. Thank you. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 8:24 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Roddy / Andrew — please let us know. Best, Vahe From: Vahe Stepanian Sent: Monday, June 27, 2016 11:44 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: Southern Financial - IA Request [I] EFTA01420564 Classification: For internal use only Roddy/Andrew — Southern Financial has indicated that they would like to enter into a TRS on the attached basket of preferreds. The total notional size would be $20mm and assume ly tenor. What would be the required IA for the attached basket? Thank you, Vahe Vahe Stepanian Key Client Partners Deutsche Bank Securities Inc. Tel. Mobil Email EFTA01420565