EFTA01019398.pdf

From: J leevacation@gmail.com> To: Paul Barrett cl Subject: Re: A few things Date: Wed, 17 Oct 2018 22:03:32 +0000 Attachments: image003.png; image004.jpg Inline-Images: image004(1).jpg; image003(1).png keep I On Wed, Oct 17, 2018 at 4:46 PM Paul Barrett a wrote: Jeffrey 1. We own $2MM of JBS 7.75% 2020 bonds. We paid 102.58 in May 2018. Company is tendering for the bonds at 102.30. Bonds currently trading around 102.00. • Implies a YTC of 2.84% • If we don't tender and they never call the bonds we end up with a 6.51% YTM • This is a high quality bond. The company continues to de-lever and should be down to <4x leverage by next year. I think we should keep the bonds as I do not believe they will call the outstanding balance once the tender is complete and we end up with a 6.51% YTM. Liquidity might dry up but we would plan to hold to maturity. 2. TRY up 3.30% since Monday. Forward points have also come in implying lyr rates of 27.50%. • We could consider selling 6 month 6.000 TRY Puts that Knock Out at 5.2500. Premium — 6.35% vs a vanilla which pays around 8.20%. • Red Line in chart below is the Knock Out Level. Would require a 6% move from here to KO. • Breakeven ofUSDTRY at 6.3800 at expiry. 3. Visa • Stock is down 5% since September • Secular shift from cash to checks continues • Visa Europe benefitting from cost synergies most acquisition • EM growth story continues • I think we should use this pullback to build a position in a high quality name. 2 EFTA01019398  Paul Barrett Alpha Group Capital LLC please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jarvaratioditgmail cow, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA01019399