Independent Partner and Advisor for Financial Operations Institutional Services Desk

Langallerie 11, CH-1003 Lausanne, Tel: +41 21 343 53 63, Fax: +41 21 343 55 50 Internet: www.tradition.ch, E-mail: [email protected], Bloomberg: TRAS

The

largest

broker in Switzerland and third largest in the world *

Solid

, transparent financial figures Listed on the Swiss stock exchange * Worldwide,

well established

market presence * Four holding units covering the most important market segments

Compagnie Financière Tradition Group

www.traditiongroup.com

98,79%

TFS -

Lausanne

Brokerage Currency options equity derivatives metals energy paper human resources capital risk day trading

Stockholm, London Frankfurt, Stamford New York, Houston Sydney, Tokyo Hong Kong, SIngapore

Viel & Cie -

Paris

Public

70,42% 2,5%

Compagnie Financière Tradition SA –

Lausanne 27,13% 100%

TSH -

Lausanne

Brokerage money markets IRS Credit derivatives Emerging countries Stocks Bonds Interest rate and equity futures

Moscow, London Luxemburg, Paris Lausanne, Milano New York, Los Angeles Buenos Aires, Tokyo Peking,Hong Kong SIngapore 100% 99,87%

TRADITION SA

Lausanne

TSAF SA

Paris *

Detailed knowledge

of the money and capital markets

TFS = Tradition Financial Services TSH = Tradition Service Holding

Compagnie Financière Tradition Group

www.traditiongroup.com

We are

institutional brokers

and negotiate with top rated banks, financial institutions, multinational companies and public institutions

Banks (Universal banks, Cantonal banks) Multinational Companies

*

Our added values:

-Optimization of your results - Global brokerage services -Centralization of counterparts The best quotations from “Market Makers” -Personal and neutral advisory * Discovery of

markets discrepancies

and through that improved results

Public corporations (Cantons, Cities, Counties) Insurance companies, Pension Funds, investment capital

TRADITION SA

Institutional Services Desk

Institutional Services Desk

www.tradition.ch

Products and Services

ADVISORY

Our Institutional Services desk is analyzing and discussing the potential needs of our clients. We offer our advisory in areas in which we are one of the main market players. The areas covered are:  

Financing & Credit Markets

 Refinancing & Investments through Private Placements  Project Financings Loan against acknowledgement of dept (Schuldschein) Structured Credits  

Investment

 Private Placements   Loan against acknowledgement of dept (Schuldschein) Structured Products Short and Mid Term Deposit Bonds  

Financial Risk Management

 Portfolio Simulation  Multi-Instrument Analysis and Presentation Risk Hedging through OTC Derivatives & Structured Products Strategic Advisory

Institutional Services Desk

www.tradition.ch

Products and Services

ADVISORY

Financing & Credit Markets

Governmental Institutions and Corporations that do seek financing possibilities via the Swiss and European capital markets for various reasons like refinancings, investments or project financings can benefit from our professional advisory. We engineer flexible project financing operations that help companies to optimize their financing structure. We can offer tailor-made solutions that optimize financial risks through structured credits, OTC Derivatives like Swaps, Swaptions, Caps, Floors etc. and structured products. Our main advantage in this kind of business is that we are acting as a financial intermediate which enables us to be fully independent and to seek for the best available counterparty in the market. Further we are fully organizing those deals (introducing, negotiations, elaboration of legal aspects and execution) and are acting as a lead manger.

Investment

We offer Banks, Insurance companies, Pension funds and Private Banks new investment possibilities in the area of Private Placements, Structured Products, Short Term Deposit and Bonds.

Financial Risk Management

In mean time we help Corporations to elaborate alternatives to cover their assets and liabilities against future interest rate risks or fluctuations in the money market. Due to our dense and wide network we are able to find the best tailor made solutions existing in the markets. Our solutions can reach from using tailor made OTC Derivatives or creating contractual agreements that do cover investments from those kinds of potential risks.

Institutional Services Desk

www.tradition.ch

Products and Services

FINANCIAL PRODUCTS

Financing

Refinancing & Investments Capital through Private Placements Project Financings Loan against acknowledgement of debt (Schuldschein) Structured Credits

Investment

Private Placements Loan against acknowledgement of debt (Schuldschein) Structured Products Short and Mid Term Deposit Bonds

Financial Risk Management

Structured Products OTC Derivatives/ Interest Rate Options: Forwards Arbitraging Exchange Rate Swaps and Eurorates Forward Rate Agreement (FRA) Interest Rate Swaps (IRS) or Currency Swaps (CRS) Basis Swaps Options on Interest Rate Swaps (Swaptions) Caps and Floors

Transparent Considerately lower commissions than banks No additional fees Directly from our trading floor The latest information on interest rates Updated continuously

Institutional Services Desk

www.tradition.ch

Your Advantages

Short and mid term development of interest rate tendencies Market analysis Articles on the economy and money Let us find the best conditions for you Time and energy saving Quick responses Updated interest rates and financial news www.tradition.ch Calculation tools and risk analysis Large and varied contact net Quick reaction thanks to extensive client net Structured financing Optimal solutions Better results Profitable deals Detailed knowledge of the financial markets Competent, personal and neutral advisory According to your needs

Complete financial information

*

Java programmes

to efficiently and accurately price derivatives and to estimate and analyze corresponding risks *

Analysis and Charts

Analysis of the tendencies on financial markets Discussions on economic issues and technical analysis *

Login Services

Institutional Services Desk

www.tradition.ch

Login Services

Institutional Services Desk

www.tradition.ch

Login Services

MARKET NEWS AND MARKET ANALYSIS & RESEARCH Daily Morning Market Update

“The Tendance”

Weekly Capital - Markets News and Forecasts

“CHF Info”

Quarterly Market Analysis Bulletin

“The Market Focus”

Weekly Fixed Income

“The Market Focus”

Institutional Services Desk

www.tradition.ch

Login Services

MARKET QUOTES & ECONOMIC DATA Charts and Data download LIBOR Long Term Interest Rates (IRS) ISDA Benchmarks, Gov. Bonds und Spreads “Real-Time”

Institutional Services Desk

www.tradition.ch

Login Services

CALCULATORS Forward Rates,

Project yield curves for any future date based on the implied spot rates in today’s curve www.tradition.ch/calculateurs/yield_spread.asp

Settlement Date Current Interest Rate (IRS-Ask)

www.tradition.ch/calculateurs/forward_rates.asp

Yield Curves (Deposit and IRS) Yield spreads between currencies Interest rate for future value dates Yield Curves

for an organized presentation of interest rate scenarios

CALCULATORS Forward Rate History

Graphical illustration of historical Forward Rates.

1. Select a period on the graph.

2. Click on the History button.

Institutional Services Desk

www.tradition.ch

Login Services

www.tradition.ch/calculateurs/forward_rates.asp

www.tradition.ch/calculateurs/forward_rates.asp

Forward Rate History

Evolution of Forward Rates since March 2004 on the 10 years Interest Rate Swap

CALCULATORS

www.tradition.ch/calculateurs/bond.asp

Institutional Services Desk

www.tradition.ch

Login Services

www.tradition.ch/calculateurs/swap_valuation.asp

Sensitivity Factors Bond calculator

calculates the price and risk parameters

Option calculator

a call/put calculates the theoretical price and numerous risk parameters of

Swap-Calculator

calculates the theoretical and actual price in addition to risk parameters for an existing IRS www.tradition.ch/calculateurs/swap_valuation.asp

Fill in your Values

CALCULATORS

www.tradition.ch/calculateurs/instant.asp

Institutional Services Desk

www.tradition.ch

Login Services

IRS calculator for broken dates

Calculate an IRS price, value Spot, until the desired maturity (by interpolation). It mentioned also the spread and the price of Government Bond for the same period.

Mention the desired Maturity.

SPREADS calculator

Calculate the price of a Spread between two currencies and for two different periods.

YIELD calculator

Calculate Yields according to various usances.

Institutional Services Desk

www.tradition.ch

Bloomberg Page

BLOOMBERG - RATES TRAS

Reference page for

IRS Cash rates

and in Euro, USD and CHF Own page for

Private Placements

with current

Prices

and other information

Institutional Services Desk

www.tradition.ch

Bloomberg Page

BLOOMBERG – PRIVATE PLACEMENTS TRAS

Own page for

Private Placements

with current

Prices

and other information

Institutional Services Desk

www.tradition.ch

Private Placements

THE BONDS ALTERNATIVE

A Private Placement is a common loan agreement with a Security Number and Valuation . The counterparty has at least a A rating at a rating agency.

The transaction can be based on a refund put option. The daily ISDA Swap rate will be used as the basis for the calculation of the interest rate difference in case of an annulation (reassignment)

Lower cost than by issuing bonds (All in) No interest rate risk thanks to reassignment clause Liquidity is ensured if the NPP is called; new offers at any time Save time, energy and money No stamp taxes or bank commissions Strict transaction and counterpart confidentiality

Tradition SA

Institutional Services

Daniel Blanchet – Manager Stéphane Weill – Sous-Directeur Christian Twerenbold – M.A. HSG

______________________________________________________________________

Rue Langallerie 11, CH-1003 Lausanne, Tel: +41 21 343 53 63, Fax: +41 21 343 55 50 Internet: www.tradition.ch, E-mail: [email protected], Bloomberg: TRAS