From: Daniel Sabba Sent: 9/18/2015 11:29:17 AM To: 'Jeffrey E.' (jeevacation mail.com CC: Paul Morris Stewart 0ldfield Ariane Dwyer Subject: brazil - is it close to a cycle reversal? ICI Classification: Confidential Vahe Ste anian 'Richard Kahn' Jeffrey — we are working on some ideas on Brazil that might be relevant if you have the view Brazil is close to a cycle reversal. Do you have a moment to chat? 1. 30y credit linked note on Petrobras that pays 3mL+445bps and has the following redemption profile: • Credit event in first three years: Early Termination and Client receives 100% x Notional • Default after the first three years: Early Termination and Client receives Recovery x Notional (similar to bonds) This structure expresses a view that either Petrobras will default in the next 3 years (where there's protection) or will survive this cycle and not default. 30% of Petrobras' bond debt outstanding is maturing in the next 3 years (see below; $16bn out of $54bn). s'te c.vae MM Pr rcw 2. Local onshore Brazilian bonds — which are trading at —15% yields. These can be accessed through a total return swap or a local onshore account. Daniel Daniel Sabba Key Client Partners Deutsche Bank Securities Inc. Tel. Mobile Email CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0060388 CONFIDENTIAL SDNY_GM_00206572 EFTA01368583