EFTA Document EFTA01373779

For Key Client Partners or US Institutional Investors. Not for Retail Distribution TOB Senior Certificates Overview of Risks and Considerations TOB Senior Certificate Risks Ex • lanation Risk Consideration Trigger Price Risk If the bond price decreases below required OC levels. the residual investor may de-lever or wiwind the trust DB Credit Risk Tender Option Termination Events (TOTE) Risk• TOB Senior Certificate Rate Risk TOB Senior Certificates investors take collateralized credit exposure to the underlying mun bond backed by a put to Deutsche Bank TOTE events include Taxability/Bankruptcy/Cred it downgrade below investment grade/Failure to pay Investor receives floating rate that resets periodically based on the benchmark rate and remarketing spread set by the remarketing agent. The spread and the benchmark rate can reset lower/ higher based on the current market environment Investor should evaluate Bond Price Risks mentioned here and be aware that transaction can unwind early DB is currently rated Baa2/BBB-11A-: Investor has 5 business day put option and can exit the transaction in advance of a credit event Upon occurrence of any of these events. TOB Senior Certificate holders lose their right to tender and instead the bonds are sold The proceeds are used to pay the TOB Senior Certificate Holders. if not sufficient, they receive the underlying bonds in kind Can be addressed by modifying the tenor of the TOB Senior Certificate Muni Bond Price Risks Risk Ex • lanation Consideration Interest Rate Broad, risk-free rates Risk increase Muni Market Spreads Idiosyncratic Credit Spread Liquidity Spread Risk Optionality / Capability Muni market spreads. measured as the difference between MMD and LIBOR. may increase Specific credit quality of the issuer deteriorates. increasing the single- name spread Specific bonds may contain nonstandard or complex features, leading to a wider single-name spread. especially in times of market stress Callable Muni Bonds are generally called when economically advantageous to the issuer, not the investor Possible to partially I fully hedge to offset rate risk Investor must be comfortable that MMD cannot be directly hedged through interest rate swaps Muni Bonds have historically experienced a very low default rate; Investors can select names across ratings and sectors that fits specific risk / return appetite Investors must be comfortable with the inherent higher risks associated with less liquid bonds, as perceived by the general market that determines the price over time Investors must be comfortable that the duration of callable bonds can change quickly. depending on the market's view of the likelihood of being called. taking into account the costs of issuing refinancing bonds Deutsche Bank • For full list of Unwind events please refer to Master Terms of Trust Agreement and Series Documents. DB can be provide additional information upon request All transactions subject to final ascot legal, tax, and other internal 08 approvals. DR is not a financial. accounting, or tax advisor to Investor and Investor should consider carefully with their advisors prior to executing any transaction. Further information can be provided upon request 16 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0068136 CONFIDENTIAL SDNY_GM_00214320 EFTA01373779