📅 Aug 17, 2016

name

From: Mark L. Epstein

To: Jeffrey E.

I just saw a guy on TV, one of trump's team, =hose name is Boris Epshteyn. Was that the spelling that our =enetic relatives in the former Soviet Union used? (was it =elarus?)

I just saw a guy on TV, one of trump's team, =hose name is Boris Epshteyn. Was that the spelling that our =enetic relatives in the former Soviet Union used? (was it =elarus?)

📅 Aug 9, 2016 REDACTED

Re:

From: Seth Lloyd

Dear Jeffrey, It was very fun talking with you the weekend before last. I have downloaded The Improvement of the Mind and am reading. I feel my mind improving already ;-) The conversation and your ideas fit in closely with work I've been doing and am proposing to do. Maybe this is not surprising because we've been talking about these topics for years. I've been traveling around (Santa Fe, now in San Francisco, soon to be in Banff) and so have had time to think more about what we discussed. He

Dear Jeffrey,

It was very fun talking with you the weekend before last. I have downloaded The Improvement of the Mind and am reading. I feel my mind improving already ;-)

The conversation and your ideas fit in closely with work I've been doing and am proposing to do. Maybe this is not surprising because we've been talking about these topics for years. I've been traveling around (Santa Fe, now in San Francisco, soon to be in Banff) and so have had time to think more about what we discussed.

Here is a succinct summary of my own take. I know yours is somewhat different.

Information is a fundamental quantity, measured in bits.

Information can be random, like the typical string of bits one gets by flipping a coin 0101110110101000011 (I just flipped a coin and let heads = 1 and tails = 0), or it can be ordered, like the bit string 0000000000000000.

There is a technical definition of order and randomness: a bit string is ordered if there is a succinctly describable method, e.g., a short computer program, for producing it. By contrast, a string is random if the shortest program for producing it is the same length as the string itself. For example, the string consisting of a billion 0's can be produced by a short program: Print '0' 1(309 times. By contrast, the shortest program to produce the string 0101110110101000011 is something like: Print 0101110110101000011. This way of defining order/randomness is called algorithmic information.

The interesting thing about algorithmic information is that the short program can be hard to find. A string can look very random and still have a short program. For example, the first billion bits of pi, written in binary, have a short program, but if I just give you those bits, they would look statistically random.

This means that so far as we or any other information processing system is concerned, order/randomness is subjective: some information can be ordered and non-random, but we may not be able to recognize the underlying order, so we treat it as random. That is, the order is cryptic: we don't know how to decode it. This crypticity is the key feature for looking at both physical systems and human/social systems.

Physical systems:

In physical systems such as a gas of molecules, entropy is the amount of information that is required to describe the underlying motions of those molecules. Because the molecules are bouncing off each other in an essentially random way, entropy is assumed to be random information.

Heat is energy that is encumbered by entropy/randomness. The randomness makes it harder to take advantage of that energy.

By contrast, free energy is energy where the information required to describe how that energy is arranged is ordered, not random. Free energy is energy we can take advantage of.

Now comes the kicker: suppose that a system is actually ordered, but that order is cryptic. If we can't decipher the order, we can't take advantage of it.

So whether energy is free or not depends on our ability to detect its underlying order. That is, the availability of energy depends on the computationall/decrypting ability of whatever system (molecule, microbe, human) is trying to take advantage of that energy.

Social/human interactions:

Human interactions are about the exchange of information, plus other stuff (goods, services, money, etc.). Everything that is exchanged brings with it the information that describes what is exchanged, what can be done with it, etc. So for example, a US Treasury bond comes with the specification of its price and its future interest payments. A complex option comes with the specification of what can be bought and sold when.

As a result, human interactions are awash in information. Different people are capable of decoding/decyphering that information in different ways. The ability to detect a pattern or order in information translates into the ability to take advantage of a social situation. For example, the efficient market hypothesis states that fluctuations in the prices of a given stock should be essentially random. But if you happen to possess some information that allows you to predice the future fluctuations of the stock, then you can make money.

Similarly, to play into you ideas about deception, when two actors enter into a transaction, each presents the other with information about their obligations under the transaction. Each actor looks at that information and judges whether the transaction will turn out to their own advantage. But because each actor perceives different patterns in the information, they can come up with different evaluations of the future worth of the transaction.

Deception arises because one actor may hide a pattern in the revealed information, a pattern that the other actor doesn't perceive, but that makes the transaction more advantageous to the first actor. I've been told that this is called, doing business.

Talk some more?

Yours,
Seth

📅 Aug 9, 2016

(no subject)

From: Seth Lloyd <slloyd@mit.edu>

To: Jeffrey E.

Dear Jeffrey, It was very fun talking with you the weekend before last. I have downloaded The Improvement of the Mind and am reading. I feel my mind improving already ;-) The conversation and your ideas fit in closely with work I've been doing and am proposing to do. Maybe this is not surprising because we've been talking about these topics for years. I've been traveling around (Santa Fe, now in San Francisco, soon to be in Banff) and so have had time to think more about what we discussed. He

Dear Jeffrey,

It was very fun talking with you the weekend before last. I have downloaded The Improvement of the Mind and am reading. I feel my mind improving already ;-)

The conversation and your ideas fit in closely with work I've been doing and am proposing to do. Maybe this is not surprising because we've been talking about these topics for years. I've been traveling around (Santa Fe, now in San Francisco, soon to be in Banff) and so have had time to think more about what we discussed.

Here is a succinct summary of my own take. I know yours is somewhat different.

Information is a fundamental quantity, measured in bits.

Information can be random, like the typical string of bits one gets by flipping a coin 0101110110101000011 (I just flipped a coin and let heads = 1 and tails = 0), or it can be ordered, like the bit string 0000000000000000.

There is a technical definition of order and randomness: a bit string is ordered if there is a succinctly describable method, e.g., a short computer program, for producing it. By contrast, a string is random if the shortest program for producing it is the same length as the string itself. For example, the string consisting of a billion 0's can be produced by a short program: Print '0' 1(309 times. By contrast, the shortest program to produce the string 0101110110101000011 is something like: Print 0101110110101000011. This way of defining order/randomness is called algorithmic information.

The interesting thing about algorithmic information is that the short program can be hard to find. A string can look very random and still have a short program. For example, the first billion bits of pi, written in binary, have a short program, but if I just give you those bits, they would look statistically random.

This means that so far as we or any other information processing system is concerned, order/randomness is subjective: some information can be ordered and non-random, but we may not be able to recognize the underlying order, so we treat it as random. That is, the order is cryptic: we don't know how to decode it. This crypticity is the key feature for looking at both physical systems and human/social systems.

Physical systems:

In physical systems such as a gas of molecules, entropy is the amount of information that is required to describe the underlying motions of those molecules. Because the molecules are bouncing off each other in an essentially random way, entropy is assumed to be random information.

Heat is energy that is encumbered by entropy/randomness. The randomness makes it harder to take advantage of that energy.

By contrast, free energy is energy where the information required to describe how that energy is arranged is ordered, not random. Free energy is energy we can take advantage of.

Now comes the kicker: suppose that a system is actually ordered, but that order is cryptic. If we can't decipher the order, we can't take advantage of it.

So whether energy is free or not depends on our ability to detect its underlying order. That is, the availability of energy depends on the computationall/decrypting ability of whatever system (molecule, microbe, human) is trying to take advantage of that energy.

Social/human interactions:

Human interactions are about the exchange of information, plus other stuff (goods, services, money, etc.). Everything that is exchanged brings with it the information that describes what is exchanged, what can be done with it, etc. So for example, a US Treasury bond comes with the specification of its price and its future interest payments. A complex option comes with the specification of what can be bought and sold when.

As a result, human interactions are awash in information. Different people are capable of decoding/decyphering that information in different ways. The ability to detect a pattern or order in information translates into the ability to take advantage of a social situation. For example, the efficient market hypothesis states that fluctuations in the prices of a given stock should be essentially random. But if you happen to possess some information that allows you to predice the future fluctuations of the stock, then you can make money.

Similarly, to play into you ideas about deception, when two actors enter into a transaction, each presents the other with information about their obligations under the transaction. Each actor looks at that information and judges whether the transaction will turn out to their own advantage. But because each actor perceives different patterns in the information, they can come up with different evaluations of the future worth of the transaction.

Deception arises because one actor may hide a pattern in the revealed information, a pattern that the other actor doesn't perceive, but that makes the transaction more advantageous to the first actor. I've been told that this is called, doing business.

Talk some more?

Yours,
Seth

📅 Aug 9, 2016 FROM EPSTEIN REDACTED

Re:

From: Jeffrey E. <jeevacation@gmail.com>

1, re flips. ordering is not my focus. my focus is that the program that says. as you approach a larger number the total number of ones and zeros (the fair coin flip.), should be 50/50/ it is the opposite of information as that relates to the individual flips. I maintain that the distribution of flips may be described by skewing. A force that leads to 50/50 2. again re heat. we cant say anything about indiv particles. but we can measure their overall temp and pressure 3. social distributions o

1, re flips. ordering is not my focus. my focus is that the program that says. as you approach a larger number the total number of ones and zeros (the fair coin flip.), should be 50/50/ it is the opposite of information as that relates to the individual flips. I maintain that the distribution of flips may be described by skewing. A force that leads to 50/50

2. again re heat. we cant say anything about indiv particles. but we can measure their overall temp and pressure

3. social distributions of talents and characteristics, seem to follow the same distribution for years.

4 deception, relies on the concept of INTENTION. not well described.

📅 Aug 10, 2016

Re: thread

From: Deepak Chopra

To: Jeffrey E.

Read the thread Most of it is too technical so above my head. My two bits Information is how consciousness creates order out of chaos. The play of Chaos / Order are complementary aspects of creativity. Deepak Chopra Carlsbad, CA 92009

Read the thread

Most of it is too technical so above my head. My two bits Information is how consciousness creates order out of chaos. The play of Chaos / Order are complementary aspects of creativity.

Deepak Chopra
Carlsbad, CA 92009

📅 Aug 23, 2016

Trust Project, etc.

From: William Blum

To: Jeffrey E.

Dear Jeff – We are hard at work on this project. I spoke with Governor Mapp about ten days ago and also I might see him when I am on island early next week. Attached for your review and comment is our memo constituting the first part of our analysis regarding the possibility of establishing the VI as a jurisdiction where large US corporations could move their asset holding subsidiaries presently located in other foreign jurisdictions such as Ireland or other offshore locations such as Bermuda,

Dear Jeff –

We are hard at work on this project. I spoke with Governor Mapp about ten days ago and also I might see him when I am on island early next week.

Attached for your review and comment is our memo constituting the first part of our analysis regarding the possibility of establishing the VI as a jurisdiction where large US corporations could move their asset holding subsidiaries presently located in other foreign jurisdictions such as Ireland or other offshore locations such as Bermuda, BVI, Cayman, Channel Islands, etc. The focus of the memo is on IRC sections 367 and 1248. Please review and let us know if you have any questions.

In the meantime, I am cleaning up the draft statutory trust legislation prepared for the Governor by Peter Hiebert. Peter's draft of this legislation was lifted directly from Delaware (which is good). The initial changes I am making relate to putting it in proper VI legislative form, as well as making substantive changes to adopt provisions of the law of other jurisdictions (or new provisions) that are more favorable than those of Delaware. Asset protection is the main focus there and the jurisdictions we are primarily looking at in this regard are South Dakota, Alaska, New Hampshire, Nevada, and Cayman Islands. Also, we are trying to work out a method by which the tax exemption for these entities will be automatic for some purposes/owner, i.e., no approval of an agency such as the EDC required; rather the exemption would be statutory if requirements are met like with USVI exempt companies. The tax exemptions will be for certain purposes, such as for use in structured finance transactions or where the beneficial owners are foreign, but we also need to draft some limitations so that we can avoid unintended or abusive use of the entities.

I shall be back in touch when I have more to report or a draft to share.

📅 Aug 24, 2016 FROM EPSTEIN

Re: Trust Project, etc.

From: jeffrey E. <jeevacation@gmail.com>

To: William Blum, Erika Kellerhals

when will you have the draft. we need a fully examined bill ready by third week of sept?

when will you have the draft. we need a fully examined bill ready by third week of sept?

📅 Aug 4, 2016

Preferreds, thoughts on fixed income, mandatory converts

From: Amanda Ens

To: jeevacation@gmail.com

Jeffrey, Rich mentioned you're interested in potentially buying preferreds. While they still pay a decent yield, I wanted to share some thoughts about why I would look at the more equity-like mandatory convertible preferred market instead. I've outlined a few points about fixed income, with some specific mandatory convert details further down. Would love to discuss in more detail at your convenience. Is fixed income the next "accident" waiting to happen in markets? - Japanese buying of US cor

Jeffrey,

Rich mentioned you're interested in potentially buying preferreds. While they still pay a decent yield, I wanted to share some thoughts about why I would look at the more equity-like mandatory convertible preferred market instead. I've outlined a few points about fixed income, with some specific mandatory convert details further down. Would love to discuss in more detail at your convenience.

Is fixed income the next "accident" waiting to happen in markets?

- Japanese buying of US corporate credit is slowing
- Supply is increasing
- Investors are trafficking as "tourists" in bond markets that they don't usually buy – unwind could be painful
- Risk parity quant funds might need to rebalance if the correlation between bonds and equities turns higher
- High yield keeps climbing despite falling oil prices
- Poor liquidity in a crowded trade (Volcker rule and other structural changes)

The Japanese had been huge incremental buyers of US corporate credit this year but last week's data shows this fell buying has fallen towards zero. This is happening in a market where supply is increasing. Charts below.

I attended some buyside meetings this week with our cross-asset and credit strategy teams and what really stood out to me was the relative acceptance of the continued theme of "tourism" in various credit markets ranging from US corporates to EM to European subordinated bank bonds to preferreds. With the incessant hunt for yield, there was even the joke that the yield craze has approached Pokamon-like levels. While the music could play on for a while, it seems that the risk-reward is more favorable at this point for US equities vs. fixed income. Equities are under-owned: institutions have net sold equities this year if you exclude buybacks, cash levels are at 15 year highs, investors have been buying protection but not much upside. Bonds don't seem to be pricing in sufficient risk premium, especially at the long end.

We've been closely following quant fund positioning, leverage levels and potential for forced selling in the future. With risk parity fund leverage high and bond-equity correlation moving from negative to zero now, the potential for rebalancing is on our radar. Risk parity portfolios own more bonds than equities (due to the lower bond vol), so there is more notional size of bonds to sell to rebalance, making US equities potentially less dangerous than the bond market. A few more details about risk parity funds are in the attached report (pages 9.11: Market impact of quant funds: Separating fact from fiction) and in the Risk Parity Risks in Fixed Income writeup further down.

Japanese buying of foreign bonds FELL again toward zero as of July 29 (vs LQD in yellow).

Mandatory Convertible Preferreds

As investors continue to search and stretch for yield, mandatory convertible preferreds stand out to me as an attractive yet often overlooked opportunity. In case you're not familiar with them, they are generally short-dated, pay a high dividend and mandatorily convert into common stock at maturity. Due to the mandatory conversion, they lack a bond floor and are equity-like with yield enhancement. You're "paid to wait" while the underlying company's fundamental story develops, so they are attractive for names where we like the company's longer term prospects but are only neutral to slightly bullish in the near term. The yield, along with the conversion ratio sliding scale, can result in an attractively skewed upside vs downside profile for holding the mandatory convert vs the common stock.

Allergan, Teva and Frontier Communications are three names we have high conviction on and they have mandatory convert preferreds that I recommend buying.

Allergan (AGN) - BAML reaffirming BUY on AGN after the FTC approval of generics sale to Teva. We like AGN due to its healthy product mix, solid pipeline and flexibility to deploy capital to drive shareholder return. Next catalyst will be 2Q earnings/2H16 Outlook on 8/8. AGN is on our firm's US-1 list of best investment ideas.

Teva Pharma (TEVA) - BAML reiterating BUY on TEVA after the FTC's approval of AGN generics deal. We continue to like TEVA's positioning in generic pharma where scale and product diversity are increasingly important. TEVA remains one of our top picks in Spec Pharma.

Frontier Comm (FTR) - BAML reaffirming BUY after Frontier reported its first post-Verizon assets merger results. FTR's earnings miss was due to a decline in the legacy business but FTR is targeting increased deal synergies that should offset the decline in legacy business. We like FTR with its 8.6% dividend yield and estimated 56% dividend payout ratio in 2017. We continue to think the market is mispricing FTR.

📅 Aug 8, 2016 REDACTED

Re: Preferreds, thoughts on fixed income, mandatory converts

From: Ens, Amanda

To: Jeffrey E.

Jeffrey, I continue to like the AGN, TEVA and FTR mandatory convert preferreds. While AGN missed on sales today, is was mostly due to noise around the last minute divestiture of their ANDA distribution business to TEVA. While the generics sale to TEVA was already built into most analyst models, the ANDA sale was not. Revenue thus looks in line. Botox and Restasis, two important products, are still growing at 16% and 21% respectively. AGN has an aggressive buyback program, targeting $5bn this yea

Jeffrey, I continue to like the AGN, TEVA and FTR mandatory convert preferreds. While AGN missed on sales today, is was mostly due to noise around the last minute divestiture of their ANDA distribution business to TEVA. While the generics sale to TEVA was already built into most analyst models, the ANDA sale was not. Revenue thus looks in line. Botox and Restasis, two important products, are still growing at 16% and 21% respectively. AGN has an aggressive buyback program, targeting $5bn this year and they should reach the full $10bn approved by next year, market conditions permitting. Their pipeline looks strong; execution will be key going forward. There has been chatter in the market about them potentially doing a big deal such as BIIB but management said on the call that they're focused on being selective/disciplined and will likely target smaller stepping stone opportunities. Outside of buybacks, the company has about $20bn of dry powder to invest for growth over the next 12-18 months, which could come in the form of acquisitions and/or debt repayment.

Long story short: would look to build a position through the AGN A mandatory convert preferred at a 6.3% current yield to March 2018.

Let me know if you have time for a call; I’m at █████████████████ > .

Thanks,

Amanda

Amanda Ens

Director

Bank of America Merrill Lynch

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park, 5th Floor, New York, NY 10036

Phone: ████████████████ > Mobile: ██████████████████████

📅 Aug 8, 2016 FROM EPSTEIN

Re: Preferreds, thoughts on fixed income, mandatory converts

From: Jeffrey E. <jeevacation@gmail.com>

To: Ens, Amanda

send more detail of the bond

send more detail of the bond

📅 Aug 8, 2016 REDACTED

(no subject)

From: Ens, Amanda

AGN mandatory convert preferred Ticker: AGN A Pfd Coupon: 5.5% Maturity: 3/1/2018 Pfd Price: 881.38 AGN stock ref: 248.31 Convert low strike: 288.00 (at maturity, if AGN is at or below 288, you get 3.4722 shares) Convert high strike: 352.80 (at maturity, if AGN is at or above 352.7959, you get 2.8345 shares) Strip yield: 6.3% (versus common stock which pays no dividend) BofAML price target: $294 (Buy, US-1 top picks list) Upside to BofAML price target: 18.4% If hold pref to maturity a

AGN mandatory convert preferred

Ticker: AGN A Pfd

Coupon: 5.5%

Maturity: 3/1/2018

Pfd Price: 881.38

AGN stock ref: 248.31

Convert low strike: 288.00 (at maturity, if AGN is at or below 288, you get 3.4722 shares)

Convert high strike: 352.80 (at maturity, if AGN is at or above 352.7959, you get 2.8345 shares)

Strip yield: 6.3% (versus common stock which pays no dividend)

BofAML price target: $294 (Buy, US-1 top picks list)

Upside to BofAML price target: 18.4%

If hold pref to maturity and stock is up 25%: 24.4%

If hold pref to maturity and stock is down 25%: -15.7%

QDI-eligible: No

Amount outstanding: $5.06 bn

TEVA mandatory convert preferred

Ticker: TEVVF Pfd

Coupon: 7.0%

Maturity: 12/15/2018

Pfd Price: 895.07

TEVA stock ref: 54.21

Convert low strike: 62.50

Convert high strike: 75.00

Strip yield: 7.9% (vs common stock at 2.5% div yield)

BofAML price target: $72.00 (Buy)

Upside to BofAML price target: 32.8%

If hold pref to maturity and stock is up 25%: 31.3%

If hold pref to maturity and stock is down 25%: -7.8%

QDI-eligible: No

Amount outstanding: $3.7125 bn

Assumes convert held to maturity; all coupons included

Source: Bloomberg

📅 Aug 8, 2016 FROM EPSTEIN

Re: Preferreds, thoughts on fixed income, mandatory converts

From: jeffrey E. <jeevacation@gmail.com>

To: Ens, Amanda

can we put leverage on them, if so what rate

can we put leverage on them, if so what rate

📅 Aug 8, 2016 REDACTED

Re: Preferreds, thoughts on fixed income, mandatory converts

From: Ens, Amanda

For the institutional custody account I'm opening for you in the investment bank here, no leverage yet. We would need to set up prime brokerage and we're not there yet. If you plan to use a lot of leverage, I can try to get an exception; prime brokerage usually requires pretty high trading volumes. If we can simply execute the purchase and deliver these to your custody at MS or DB and use their margin, it should be the standard 50% for purpose lending; perhaps higher if you have a non-purpose li

For the institutional custody account I'm opening for you in the investment bank here, no leverage yet. We would need to set up prime brokerage and we're not there yet. If you plan to use a lot of leverage, I can try to get an exception; prime brokerage usually requires pretty high trading volumes. If we can simply execute the purchase and deliver these to your custody at MS or DB and use their margin, it should be the standard 50% for purpose lending; perhaps higher if you have a non-purpose line. Note that since mando convert preferreds are highly correlated to the stock, the vol is much higher than on a bank preferred. The AGN A Pfd is has a 19% 30-day vol (vs 24% for the common stock) and 30% 90-day vol (vs 41% for the common stock). For comparison, PFF had a 4.5-5% vol.

📅 Aug 8, 2016 FROM EPSTEIN

Re: Preferreds, thoughts on fixed income, mandatory converts

From: jeffrey E. <jeevacation@gmail.com>

To: Ens, Amanda, Richard Kahn

lets buy 1 m each

lets buy 1 m each

📅 Aug 9, 2016

RE: Preferreds, thoughts on fixed income, mandatory converts

From: Amanda Ens

To: jeffrey E., Richard Kahn

Jeffrey, Updated levels: AGN 5.5% 3/1/18 Pfd $895.50 (6.2% strip yield) TEVA 7.0% 12/15/18 Pfd $894.00 (7.9% strip yield) FTR 11.125% 6/29/18 Pfd $95.15 (11.9% strip yield)

Jeffrey,

Updated levels:

AGN 5.5% 3/1/18 Pfd $895.50 (6.2% strip yield)

TEVA 7.0% 12/15/18 Pfd $894.00 (7.9% strip yield)

FTR 11.125% 6/29/18 Pfd $95.15 (11.9% strip yield)

📅 Aug 15, 2016

RE: Preferreds, thoughts on fixed income, mandatory converts

From: Amanda Ens

To: jeffrey E., Richard Kahn

Jeffrey, The account will be open today. Please find updated levels below; would you like to proceed with the purchases? AGN 5.5% 3/1/18 Pfd @ $882.00 (6.2% strip yield) TEVA 7.0% 12/15/18 Pfd @ $901.75 (7.9% strip yield) FTR 11.125% 6/29/18 Pfd @ $94.80 (12.0% strip yield) AGN mandatory convert preferred Ticker: AGN A Pfd Coupon: 5.5% Maturity: 3/1/2018 Pfd Price: 882.00 AGN stock ref: 251.50 Convert low strike: 288.00 (at maturity, if AGN is at or below 288, you get 3.4722 shares)

Jeffrey,

The account will be open today. Please find updated levels below; would you like to proceed with the purchases?

AGN 5.5% 3/1/18 Pfd @ $882.00 (6.2% strip yield)

TEVA 7.0% 12/15/18 Pfd @ $901.75 (7.9% strip yield)

FTR 11.125% 6/29/18 Pfd @ $94.80 (12.0% strip yield)

AGN mandatory convert preferred

Ticker: AGN A Pfd

Coupon: 5.5%

Maturity: 3/1/2018

Pfd Price: 882.00

AGN stock ref: 251.50

Convert low strike: 288.00 (at maturity, if AGN is at or below 288, you get 3.4722 shares)

Convert high strike: 352.80 (at maturity, if AGN is at or above 352.7959, you get 2.8345 shares)

Strip yield: 6.2% (versus common stock which pays no dividend)

BofAML price target: $294 (Buy, US-1 top picks list)

Upside to BofAML price target: 16.9%

If hold pref to maturity and stock is up 25%: 22.3%

If hold pref to maturity and stock is down 25%: -16.2%

QDI-eligible: No

Amount outstanding: $5.06 bn

TEVA mandatory convert preferred

Ticker: TEVVF Pfd

Coupon: 7.0%

Maturity: 12/15/2018

Pfd Price: 901.75

TEVA stock ref: 54.14

Convert low strike: 62.50

Convert high strike: 75.00

Strip yield: 7.9% (vs common stock at 2.5% div yield)

BofAML price target: $72.00 (Buy)

Upside to BofAML price target: 33.0%

If hold pref to maturity and stock is up 25%: 30.3%

If hold pref to maturity and stock is down 25%: -8.5%

QDI-eligible: No

Amount outstanding: $3.7125 bn

FTR mandatory convert preferred details

Ticker: FTRPR Pfd

Coupon: 7.0%

Maturity: 12/15/2018

Pfd Price: 94.80

FTR stock ref: 4.90

Convert low strike: 5.00

Convert high strike: 5.875

Strip yield: 12.0% (vs common stock at 8.6% div yield)

BofAML price target: $7.50 (buy)

Upside to BofAML price target: 53.4%

If hold pref to maturity and stock is up 25%: 33.5%

If hold pref to maturity and stock is down 25%: 1.1%

QDI-eligible: No

Amount outstanding: $1.925bn

Assumes convert held to maturity; all coupons included

Source: Bloomberg

Thanks,

Amanda

📅 Aug 26, 2016 FROM EPSTEIN

(no subject)

From: jeffrey E. <jeevacation@gmail.com>

To: Brad Wechsler

if you can call me when you wake, , lets not h=ve any all hands on call with PWC delioite etc -= please note The information contained in this communication is confidential, may la= attorney-client privileged, may constitute inside information, and is =ntended only for the use of the addressee. It is the property of JEE=br>Unauthorized use, disclosure or copying of this communication or any=part thereof is strictly prohibited and may be unlawful. If you have re=eived this communication in err

if you can call me when you wake, , lets not h=ve any all hands on call with PWC delioite etc

-=

please note

The information contained in this communication is confidential, may la= attorney-client privileged, may constitute inside information, and is =ntended only for the use of the addressee. It is the property of JEE=br>Unauthorized use, disclosure or copying of this communication or any=part thereof is strictly prohibited and may be unlawful. If you have re=eived this communication in error, please notify us immediately by r=turn e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication a=d all copies thereof, including all attachments. copyright -all rights =eserved

📅 Aug 4, 2016 FROM EPSTEIN

(no subject)

From: jeffrey E. <jeevacation@gmail.com>

To: Erika Kellerhals

jp? permits?

jp? permits?

📅 Aug 11, 2016 REDACTED

Re: GSJ: MB carpet

From: Ann Rodriquez

This is the only carpet they have in stock that's Berber anything else would have to be ordered and will take at least 2 weeks to arrive. Ann R.

This is the only carpet they have in stock that's Berber anything else would have to be ordered and will take at least 2 weeks to arrive.

Ann R.

📅 Aug 11, 2016 REDACTED

(no subject)

From: Ann Rodriquez

Which one would you like

Which one would you like