Epstein Secrets

ielding -10% Buy Brazil CDS costs 3.9=% The bet is that spreads =ighten (see green chart below). </=pan> EFTA_R1_01577231 EFTA02467912 Source: Bloomberg 31=3/16 Syr Petrobras & Syr Brazil CDS: Buy Buy CDS Protection Bond: PETBRA 5 4 01/27/21 Contract: Brazil Syr CDS Issuer: PETROBRAS GLOBAL F

trobras debt notional = $105=In). We think it makes sense to play for the spread to compress back to 30=-400bps. We can execute this through a long PETBRA position a=d buying protection on S yr BRL CDS to reduce risk. Details below.<=> 1.Spread Trade - CDS leg reduces risk in first=option Buy Pet

Joaquim Levy ruled out the possibility o= Brazil's Treasury guaranteeing a bond backed by about BRL9bn owed to Petr=bras by Eletrobras, according to Bloomberg. We view this as qualitatively =egative for PETBRA, as it indicates to us that the Brazilian government is=not willing to directly support the compa

sury guaranteeing a bond backed by about BRL9bn owed to Petr=bras by Eletrobras, according to Bloomberg. We view this as qualitatively =egative for PETBRA, as it indicates to us that the Brazilian government is=not willing to directly support the company until it becomes unavoidable. =his brings downsi

spreads tighten (see green chart below). Source: Bloomberg 3/23/16 Syr Petrobras & Syr Brazil CDS: Buy =nb

trobras debt notional = =105Bln). We think it makes sense to play for the spread to compress =ack to 300-400bps. We can execute this through a long PETBRA position =nd buying protection on 5 yr BRL CDS to reduce risk. Details below. 1. Spread =rade - CDS leg reduces risk in first option Buy Petrobra