EFTA00630472.pdf

From: "Barrett, Paul S" To: jeffrey epstein CC: "Giuffrida, David J" <I Subject: RE: Knock Out and NRG bonds Date: Tue, 21 Feb 2012 20:20:15 +0000 Our Felcor bonds have done really well with the yield now below 5%. We own $2.3MM face. I would like to get our Ally position up to $5MM (we own $2.9MM face). Therefore I think we should rotate out of the Felcor bonds into the Ally Pfds. We would buy the Ally A Pfds (ytw 9.30%) which are trust preferreds and higher up on the capital structure than our Ally B Pfds. I like have a mix of both. Let me know Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank From: Jeffrey epstein [mallto: Sent: Tuesday, February 21, 2012 2:54 PM To: Barrett, Paul S Subject: Re: Knock Out and NRG bonds Yes Sony for all the typos .Sent from my iPhone On Feb 21, 2012, at 8:41 AM, "Barrett, Paul S" Jeffrey We knocked out on our short BRL put option. We took in $125K 3 weeks ago. Can I buy 1MM of the NRG bonds? Thanks Paul > wrote: EFTA00630472 Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank From: Barrett, Paul Sent: Friday, February 17, 2012 1:53 PM To: Jeffrey epstein' Cc: Giuffrida, David 3 Subject: To Do - NRG bonds - reiterate OW Jeffrey We should buy $lmm of this bond. Ytw 7.625%. Dave Katz reiterates OW in his initiation of a high yield utility monthly. We nit our Overweight on NRG credit and update our NRG financial model in advance of earnings. We estimate that the company generated $384 million of EBITDA in 4Q11. We expect NRG will address the lower natural gas price environment and how it will impact, if at all, its timeline to refinance the 2017 notes and the company's shareholder friendly actions (i.e., dividends and share repurchases). We model a pick-up in shareholder friendly activities; this assumption may prove conservative if the company does not refinance the 2017 notes and given that NRG may flex the activities down to help guard cash. Despite these assumptions, and using the current natural gas fonvard price curve (NGA <CMDTY> <GO> CCRV COP.), we expect gross recourse debt leverage would increase from 4.2x to 5.3x at the end of 2013, before falling to 4.3x at the end of 2014. We believe NRG Energy is set up to survive an extended period of low power prices. Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://wwwjpmorgan.com/pages/disclosures/email. <Short Circuit.pdf> EFTA00630473