EFTA02618709

From: Paul Barrett < Sent: Wednesday, October 17, 2018 8:46 PM To: Cc: Richard Kahn Subject: A few things Jeffrey > 1. We own $2MM of JBS 7.75% 2020 bonds. We paid 102.58 in May 2018. Comp=ny is tendering for the bonds at 102.30. Bonds currently trading around 10=.00. • Implies a YTC of 2.84% • If we don't ten=er 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 =he bonds as I do not believe they will call the outstanding balance once the tender is complete and we end up wit= 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 =yr rates of 27.50%. • We could consider selling 6 month 6.000 TRY Puts that Knock Out at =.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 of USDTRY at 6.380= at expiry. 3. Visa ▪ Stock is down 5% since September ` Secular shi=t from cash to checks continues ` Visa Europe benefit=ing from cost synergies most acquisition • EM growth =tory continues • I think we should use this pullback =o build a position in a high quality name. Paul Barrett EFTA_R1_01822810 EFTA02618709 Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 10019 <mailto > 2 EFTA_R1_01822811 EFTA02618710