As soon as NY gets in will get a price on the MBONO 7.75% 11/13/2042 and ping u as and when our view on rates or the currency changes will keep u updated, as here u have risk on both components unlike the PDVSA where the bond was denominated in USDs. Best Vinit Vinit Sahni Managing Director I Global Head - Professional Client Group 8 Key Client Partners Capital Markets Group Deutsche Asset & Wealth Management 105/108 Old Broad St (Pinner; Hall). EC2N t F N t nMnn n inflrn Kingdom Tel. E Any proposed ideas are being delivered to you by the DeAWM Key Client Partners ("KCP") London desk for discussion purposes ordy. and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affdiates ("DB") These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients arc Professional investors (as defined by MIFID). who understand the strategy, characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approval prior to execution. Peifirpqn From. Jeffrey Epstein leevacation(digmatcom> To. Vinit Sahniklbic Date: 14(01/2014 10:18 Subject: Re: Jeffrey • Mexico -, MBONO 30y look interesting (C] agreed lets do 3m On Tue, Jan 14, 2014 at 4:23 AM, Vinit Sahni <•- > wrote: Classification: Confidential Jeffrey - was looking for value in the EM space, post the PDVSA analysis, started looking at Mexico... here is a trade I think makes sense -> buying MBONO 30y unhedged At around 7.5% yield, inflation probably in the 3-4% in the foreseeable future, and USD/MXN likely stable or stronger in real (deflated) terms, I think it is good value. The curve is steep. If you look at 10Y10Y UST and 10Y10Y MXN yields, the spread is above 500bp . Say inflation differential is 100bp higher in Mex and credit diff is 100bp (WY CDS is about 100bp higher in Mexico although Mex has much better debt dyn), this still leaves CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 107644 CONFIDENTIAL SDNY_GM_00253828 EFTA01451258