arrow_back
Egypt
1 message picture_as_pdf Source PDF
P
Paul Barrett Apr 11, 2018 3:46 PM
To
Jeffrey E.
Cc
2 options
- Total Return Swap on a lyr T-Bill
a. You get the return and pay away $ 1 Month Libor +125bps (so rough=y 3.14%)
b. Yield ~16%
c. Withholding =f 15%
d. Govt entry tax of 1%
e. Exi= tax of 0.5%
f. Net lyr return assuming no FX movement - =.96% (after paying away the 3.14%)
g. Liquidity good to =20MM
- Buy EGP through a forward lyr
a. Net return assuming no FX movement —8.65%
b. Liquid=ty good $2-5MM per clip
I prefer the forward. If we unwind the Swap in 3 mon=hs we still have to pay the 0.50 exit tax (no pro rata).
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor,=New York, NY 10019