From: Jeffrey Epstein leevacation@gmail.com>

From: Jeffrey Epstein leevacation@gmail.com> To: "Barrett, Paul S" c > Subject: Re: To Do - : NEW HY RMBS - 512.5mm of BSABS 04-AC6 MI € 549-16 (7.03% yield/2.81 dun.) Date: Wed, 15 Aug 2012 19:42:41 +0000 ok On Wed, Aug 15, 2012 at 12:02 PM, Barrett, Paul S wrote: ]effrey This is another interesting mortgage bond. Spend around $1.37MM. I think we should take it. USOnshore °king- Blot SAy (US Store Securities low): Please confirm Blue Sty diglbary before soliciting too US Onshore client by entering the LUMP So the web tool located at: atfelksisopw, eme.cfamcisme.actmatzlecuraseclucei and terk-w to seed your scent's store of residence Is listed.? you receive 'NO SECURITY FOUND; 'NO STATES FOUND' or the security DOES NOT HAVE A custvor Isnot MD-denominated, then please contact your SM or local compAionce officer and provide the requested secumy and client int annetion. Please note that a sunobiNey revkw and other pre.trode procedures aunt still be followed. Why we think this bond Is compelling: • peal still ha< nvercallateralitation: There's currently $1 3mm nverC011aterallzailm in the deal. OvercollateralizatIon (OC), which Is essentially excess mortgages over the amount of bonds issued, has been Increasing sincemiriT20)2. This is a function of the underlying mortgages bearing fixed coupons while the issued bonds are low margin 1ML floaters. The excess Interest generated from this is used to pay down the senior classes In the deal thus reducing the relative amount of bonds outstanding vs mortgages outstanding. Thus OC Is the first line of defense against credit losses. That's why the most Junior class In the deal, the B3s, have not taken a principal write-down to date. Relatively short duration across all <renal:jos Base case is relatively conservative:6 month CDR prints are around 2.05% vs our base case assumption of 6 for 3 years then 5 for a year and finally 4.5 tall. Please call the desk with all bids/inquiries related to this bond. X32124 mi6mu6ifTS mPi Updated LTV = 85% 90 months seasoned 681 MO "Source: Bloomberg &SAGS 2004.AC6 Nt Offered se 4916 BOND DESCRIPTION Prepay Rale Debut Rale Default Sr.r.w4y Delet4 Adriete (% On Ekorro• Fctergeres9 2.5 CPR 6.5 for 304 COR 65 for 3860 for 12 56 65 002 Ica 200 Cunene Belem. 15 romp 205 CPR 6 lor 33 5 br 124E CDR 60 ramp 188680 nem 1265 9) 002 for 200 Cunenl Bank 6 CPR 5for 364 CDR %lame 12 6056 90 0 02 for 20 0 Omen, 8.,Isnce Cusp ovnei race. Curreni pew Bond bp. Rao (S&P.Woo.10.:Firch) = Curreni Coqp . 073879LR7 12.50)0k 2.798853 AAA Me/2 Ratter 111 AL • 8700M 0.916% Yield. Base Case 1.034% POWS 4916 Elmo Con it BaseCase R_. Case WM-080st Casa 4.08 Mid .0.855 7.034 12.928 PrhripalNinclow. Base Case Asql2 b Swab Spread over Tay 477 616 1194 Wriscban % 47.03% Duration 309 2.51 235 Connor Crock (renew 1383% WAL 481 4.03 5.10 03' Thernrwerves 2831 Pr r,:c.,PAIntxx. Aug12 to Jun28 Aeg1210 swat Aug12 toAorp22 60. Dedinquoncyantrapo 049x Pr n:Laat Wri ..”wn 58.98% 4785% 3593% IN C011.1! LO::: 004% 5.73% 528% UNDERLYING COLLATERAL DESCRIPTION Total 2810% 27.65% 2520% MOCKS Loan Balance (5.0006) 218 Loan Cons 429 HISTORICAL PERFORMANCE MAPCO TYPO AR-A SEW FN NOS 3 MOOS I NOS atd Avg Mo4psge Coupon C.CR 009 261 644 0.200% WM Avg FICO Sore 681 CDR 000 1 44 245 WM Avg Oilp Loan.. .Yoke 7538% RA RA 42.48 HPIA4 LTV 05,19% Weighted Avg Loan Ark evince Ocomio0 91 8137 Tap 1 Geo Conoantaban Cana Itp 2 Geo Coneontaban NY 22% Iter 3 asocorkonewsk F1-10% Aware Current (24 mot) 57.06% IMPORTANT DISCUUMER: Non.agency RMBS is a complex fixed income product and is not suitabk for all investors. Please note that while desk assumptions are driven by a number of collateral and macro factors, the historical performance of a deal is not indicative of Its future performance. Additionally, this message is a product of sales and trading and is not a research report. Other key risks to consider are outlined below: Al investments are subject to possible loss of principal EFTA00941464 Non-Agency bonds may have limited liquidity and clients should be aware that the secondary market for mortgage-backed securities has experienced periods of dliquirlity and may do so in the I uture. Illiquidity means that there may not be any purchasers for your class of certificates. Although any class ol certificates may experience liquidity, it is more likely that classes that are lower in the capital structure and non- investment grade related may experience greater illiquidity than more senior, investment-grade rated classes. - High Yield Non-Agency bonds are speculative non-investment grade bonds that have higher risk ol default or other adverse credit events which are appropriate for high risk investors only This email is confidential and subject to important disclaimers and conditions includin, on offers for the • urchasc or sale of securities. accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at 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 Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any pan 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 c-mail to jcevacation@gmail.com. and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00941465