HOUSE_OVERSIGHT_014397.jpg
Extraction Summary
3
People
4
Organizations
1
Locations
2
Events
3
Relationships
4
Quotes
Document Information
Type:
Email
File Size:
Summary
This document is an email from Amanda Ens to Jeffrey E. (at jeevacation@gmail.com) and Richard Kahn, dated November 17, 2016. The email, marked with high importance, provides a financial analysis and a specific trade recommendation to 'Buy DXJ Jan 50/52 Call Spread', betting on a rise in Japanese equities following the 2016 US presidential election. The analysis suggests that the 'Republican sweep' will strengthen the USD and benefit Japanese banks, making it a lucrative investment.
People (3)
| Name | Role | Context |
|---|---|---|
| Amanda Ens | Sender |
Sent an email with financial analysis and a trade recommendation regarding Japanese equities.
|
| Jeffrey E. | Recipient |
Recipient of the email at the address jeevacation@gmail.com. The email provides a specific investment idea.
|
| Richard Kahn | Recipient |
Co-recipient of the email containing financial analysis and a trade recommendation.
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| BAML |
Bank of America Merrill Lynch, cited for their forecast that USDJPY will reach 115-120 by the end of 2017.
|
|
| BOJ |
Bank of Japan, mentioned for its intentions regarding the local yield curve.
|
|
| Bloomberg Finance L.P. |
Source of the chart and data provided in the email.
|
|
| HOUSE_OVERSIGHT |
The footer 'HOUSE_OVERSIGHT_014397' indicates the document is from a collection related to a U.S. House of Representa...
|
Timeline (2 events)
2016-11-17
An investment recommendation was sent via email, suggesting a bullish position on Japanese equities.
November 2016
The 'Republican sweep' (referring to the 2016 US presidential election won by Donald Trump) is cited as the primary catalyst for the investment thesis presented in the email.
United States
Locations (1)
| Location | Context |
|---|---|
|
The country at the center of the investment strategy discussed in the email.
|
Relationships (3)
Amanda Ens sent an email with a specific, high-importance investment recommendation to Jeffrey E. at his 'jeevacation@gmail.com' address.
Amanda Ens sent an email with a specific, high-importance investment recommendation to Richard Kahn.
Both were co-recipients of the same financial analysis and investment recommendation email.
Key Quotes (4)
"Buy DXJ Jan 50/52 Call Spread for $0.35, ref 47.45, 13d. 4.7X net payout"Source
HOUSE_OVERSIGHT_014397.jpg
Quote #1
"The Republican sweep means higher USD and yields are a foregone conclusion. We see USDJPY reaching 120 next year and Japanese reflation, bullish for Japanese equities, particularly the banks."Source
HOUSE_OVERSIGHT_014397.jpg
Quote #2
"Huge focus on Banks/Financials post Trump election, they're the big winners."Source
HOUSE_OVERSIGHT_014397.jpg
Quote #3
"BAML expects USDJPY 115-120 by end of 2017."Source
HOUSE_OVERSIGHT_014397.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (2,247 characters)
From: Ens, Amanda [REDACTED]
Sent: 11/17/2016 8:55:12 PM
To: jeffrey E. [jeevacation@gmail.com]; Richard Kahn [REDACTED]
Subject: USDJPY testing 110. Buy Japan upside
Attachments: image001.png; image002.png; image003.png; image004.jpg; image005.jpg; image006.jpg; image007.jpg; image008.png; image009.jpg; image010.jpg; image011.jpg; image012.gif; Nikkei to 20000.pdf; Japan - Ready for ignition.pdf; Japan Macro Watch.pdf
Sent: 11/17/2016 8:55:12 PM
To: jeffrey E. [jeevacation@gmail.com]; Richard Kahn [REDACTED]
Subject: USDJPY testing 110. Buy Japan upside
Attachments: image001.png; image002.png; image003.png; image004.jpg; image005.jpg; image006.jpg; image007.jpg; image008.png; image009.jpg; image010.jpg; image011.jpg; image012.gif; Nikkei to 20000.pdf; Japan - Ready for ignition.pdf; Japan Macro Watch.pdf
Importance: High
Buy DXJ Jan 50/52 Call Spread for $0.35, ref 47.45, 13d. 4.7X net payout
We can also discuss single stock and Topix banks index (TPNBNK) ideas
The Republican sweep means higher USD and yields are a foregone conclusion. We see USDJPY reaching 120 next year and Japanese reflation, bullish for Japanese equities, particularly the banks.
➤ Huge focus on Banks/Financials post Trump election, they're the big winners.
➤ The Banking sector is the main beneficiary of higher rates/less regulation overhang.
➤ Investors are still underweight Japan. Especially in financials, so the move can have legs
➤ Valuation still at depressed levels. Japanese Banks are cheap versus their peers.
➤ Having said that, uncertainty still there so buying calls and call spreads makes sense. Some investors are still skeptical. Instead of building a large cash position, we believe options are a better play in case the market reverses and initiates a risk off move again.
➤ The Banking sector is the main beneficiary of higher rates/less regulation overhang.
➤ Investors are still underweight Japan. Especially in financials, so the move can have legs
➤ Valuation still at depressed levels. Japanese Banks are cheap versus their peers.
➤ Having said that, uncertainty still there so buying calls and call spreads makes sense. Some investors are still skeptical. Instead of building a large cash position, we believe options are a better play in case the market reverses and initiates a risk off move again.
-BAML expects USDJPY 115-120 by end of 2017. NKY target of 20,000 (12% upside)
-BOJ's intentions to refrain from further flattening of local yield curve positive for Banks and Insurers.
-DXJ carries a 12% weight in banks whereas NKY is only 1.07% and even TPX is only 8.55%.
-Positioning light. DXJ shares outstanding at 3year lows as foreigners have net sold $52bln of JP equities ytd.
-DXJ skew remains flat. 2m 25d Put/Call skew at 19%tile over the past year.
-BOJ's intentions to refrain from further flattening of local yield curve positive for Banks and Insurers.
-DXJ carries a 12% weight in banks whereas NKY is only 1.07% and even TPX is only 8.55%.
-Positioning light. DXJ shares outstanding at 3year lows as foreigners have net sold $52bln of JP equities ytd.
-DXJ skew remains flat. 2m 25d Put/Call skew at 19%tile over the past year.
Japan Investment Strategy, Japan Econ Outlook and Japan Macro Watch attached
DXJ 2m 25d Put/Call over the past year.
[Chart Image]
Hi: 1.3928
Ratio: DXJ
(1.) Delta Ivol (25 Put 2 Months LIVE - LIVE Bloomberg)
Dec 2015, Mar, Jun 2016, Sep
Low: 1.1171
1.40
1.35
1.30
1.25
1.20
1.15
1.10
Copyright© 2016 Bloomberg Finance L.P. 17-Nov-2016 13:41:34
Source: Bloomberg
Hi: 1.3928
Ratio: DXJ
(1.) Delta Ivol (25 Put 2 Months LIVE - LIVE Bloomberg)
Dec 2015, Mar, Jun 2016, Sep
Low: 1.1171
1.40
1.35
1.30
1.25
1.20
1.15
1.10
Copyright© 2016 Bloomberg Finance L.P. 17-Nov-2016 13:41:34
Source: Bloomberg
HOUSE_OVERSIGHT_014397
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