EFTA00754050.pdf

From: Paul S Barrett To: Jeffrey Epstein <jeevacation@gmail.com> Subject: RE: Trades Date: Wed, 03 Nov 2010 17:24:23 +0000 We are long EUR vs short HUF with the view that HUF was going to weaken based on peripheral funding issues in Europe spreading to Eastern Europe. This has not occurred and HUF fundamentals have been improving over the last 2 months. Also want to maintain more discipline about selling our losing positions. Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40k1 57th Street, 33rd Floor, New York, NY 10019 From: Jeffrey Epstein [maikoleev-acation@gmall.00m] Sent: Wednesday, November 03, 2010 1:13 PM To: Paul S Barrett Subject: Re: Trades yes , also please explain euro loss On Wed, Nov 3, 2010 at 6:11 PM, Paul S Barrett Just to confirm: wrote: Yes to BP Yes to unwind EURlIUF Yes to setting up a line of credit to implement a swap spread widener....this will take a few days. Nothing on gold EFTA00754050 Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 From: Jeffrey Epstein [mailto:jeevacation®gmail.com] Sent: Wednesday, November 03, 2010 12:49 PM To: Paul S Barrett Subject: Re: Trades ok to both.. i have been touting euro alone since july„ I think gold goes to 1260 so no , i don't like On Mon, Nov 1, 2010 at 7:56 PM, Paul S Barrett > wrote: Hi Jeffrey Left you a message. - I think we should buy $3MM of BP via a TRS. Stock is still down $22 (-33%) from the highs in April. Our px target is $48/share. - Our EURHUF position (fwd plus covered option) is down $260K. We should shut it down. Flows into HUF are picking up on a stabilization of their domestic credit markets and I can't see a catalyst on this position. - We should put on a 10yr swap spread widener (buy 10yr treasuries and pay fixed in swaps). If the Fed commits to buying more treasuries, Treasuries should become more expensive relative to swaps. We would need to do around $20MM to make it worthwhile. We should set up a line of credit for this trade. EFTA00754051 Also what do you think of this QE2 trade: 2 weeks Buy 1355 Gold Call Sell 1330 Gold put Cost = $11/oz If the Fed delivers a large QE2 number, precious metals should do well. If they only promise a gradual approach, we could see gold sell off near term at which time we would be exercised into a long gold position at 1330/oz. Either way, I think the Fed's easy money/inflationary bent should support the precious metals complex. I think this would be a great hedge against our long USD/short JPY position. Paul Barrett, CFA Managing Director Global Investment Opportunities Group 7PMorgan Private Bank 4014 57th Street, 33rd Floor, New York, NY 10019 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:f/www.jpmorgan.com/pages/disclosures/email. 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 part 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 e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. EFTA00754052 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://wwwj morgan.corn/pages/disclosures/email. 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 part 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 e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. EFTA00754053