1. Sales & Trading Breakout Ash Pabalkar Finance Club 11/13/05

2. Agenda 1.Market Wrap 2.Recruiting and Informationals 3.Mortgages – Anthony Ross 4.Program Trading – Michael Dalpe

3. Past Week Events DB Credit Derivatives Teach In: Went well, lot of good questions, high energy Lehman S&T panel Lehman informational interviews signup sheet DB, UBS informationals: contact directly Morgan Stanley diversity dinner

4. Next Week Events 11/14: Lehman Diversity Fireside Chat (12:30 – 2PM, Phelps) 11/14: Goldman Sachs MBA presentation (5PM – 6:15PM, D1276) Ohio State Game DB Tailgate

5. Market Wrap Q: Where did the Dow close on Friday? For the week? Month? YTD? Why? A: The Dow closed at 10,686 up 46 points. It was up 1.5% for the week, its third straight week of of 1% or more. It is up 2.5% (245pts) in November, but slightly down for the year (2004 close:10,783) Crude Oil prices are down 20% since peaking at >$70/bbl post Katrina, warm weather in Northeast. NYMEX Oil futures closed at $57.53/bbl.

6. Market Wrap (contd.) Q: What’s going on in the bond market? A: Market closed Friday for Veterans day. Yield on the 10 year note is at 4.57%. Mortgages: Toll Brothers (TOL), one of the largest luxury home builders, cut earnings guidance due to softening demand. Signs of slowdown in the housing market. Credit Default Swaps offering protection on BBB- mortgage bonds rose from 150bp to 350bp

7. Market Wrap (contd.) Q: Economic Indicators this week? A: The Trade Gap widened to a record $66B in September, up 11% from $59.35B in August. Exports dropped 2.6%, imports jumped 2.4% due to Katrina and Boeing strike. Deficit with China rose to $20.11B, the biggest gap with any country in US history Further yuan strengthening, upcoming Bush visit to China