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sd-10-EFTA01457218Dept. of Justice

EFTA Document EFTA01457218

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Clo&A 'Flack Recomrnendatiorts Cont'd Tral S I)staN Redonda Risks O Cloyed Exit P/L Option Buy 31,000mm 6m single reset cap CMS10-CMS5 strike 89bp for 9.75c Carry pays for option, repriced on Cu rve fed suggests 5y outperfonnance flattening, max loss premium 6/20/14 +9 bp 11/20/14 0 bp -976k Option Sell $100mn 3M5Y straddles vs. buy $100mn 3M5Y 22bp OTM payers for net takeout of 100c. No big changes in vol near term Rates rally 9/19/14 -100 bp 12/30/14 0 bp +1,029

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Dept. of Justice
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sd-10-EFTA01457218
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