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
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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
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