REPO CONDUITS

Cutwater manages East-Fleet Finance, a repo conduit that provides financing to financial institutions rated at least A-1/P-1. Financing ranges from overnight to 365 days and can be in USD, Euro or GBP. The repo counterparty provides collateral which could include bonds, equities and whole loans and all collateral is subject to haircuts, mark-to-market and variation margins. East-Fleet Finance launched in February 2006.