Turkey and EURUSD [C]

(BN) Foreigners Unload Turkey Bonds as Probe Tarnishes Erdogan G rowth

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CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL

Jeffrey:

Gaud to get your views on Turkey. Depending your views. consider simple implementations on weakness, including short-term sovereign debt (TRY denominated) ex: TURKGB 8.3% 10/7/15 offered -9.7% and TUR (iShares ETF tracking MSCI Turkey Investable Market Index. off -22% since 1025), Our KCP desk has seen a pick-up in interest this week on the back of news flow that I'm sure you know better than most (existing political unrest compounded upon by accusations against of bribery, gold smuggling, and money laundering against govemment officials, the replacement of half the cabinet. upcoming elections in 2015, and debate around FX intervention going fomend to fight TRY depreciation). DB Global Emerging Market (GEM) Research highlights that. at present levels, the major risks for Turkish equities are priced in (full report attached. Bloomberg article below).

If you agree with the asymmetric upside risk to Turkish equities (beady) consider: $250k position in TUR (to start) in Southern Financial

If you agree with a reversion in creds spreads and a mean reversion from the latest leg in TRY sell-off. consider 2mm (-51mm usd worth) of short term sovereign notes in Southern Trust (be aware, they trade thin).

Happy to show FX structures around TRY and/or other debt/equity solutions as well.

Separately, the EURUSD bounced back up to 1.38 this morning. Curious if you remain bulish and, if so. you had an opporknity to review the deposit plus strategy (works best if EURUSD bounces within a range - not as good of entry pont here. but worth watching for entry point if you decide you it matches your view).

Speak with you soon,
Tazia