if we bought that on August 13th what would mark to market be? are you still recommending this same position? please advise thank you Richard Kahn HBRK Associates Inc. Begin forwarded message: From: Paul Barrett Subject: EM Update Date: August 23, 2018 at 10:18:43 AM EDT To: jeffrey E. <[email protected] <mailto:[email protected]» Cc: Richard Kahn Brazil Update: 2 EFTA_R1_01796249 EFTA02605651

BRL continues to weaken. Elections are October 7: Election Day (first-round) and then October 28: Second-round vote. Further weakness going into the election could give us a very interesting entry point. Recall we saw big relief rallies in ZAR and MXN post-elections. TRY Update: Quiet week given EID. Spot at 6.0900. No new incremental news. RUB Update: Central Bank intervening to support RUB. Spot at 68.00. Down about 2% on the week. "Russia's central bank said it will suspend sales of rubles to purchase foreign exchange through the end of September in an effort to steady the currency, helping pull it back from the lowest level in two years." Paul Barrett Alpha Group Capital LLC From: Paul Barrett Sent: Friday, August 17, 2018 2:30 PM To: 'jeffrey E.' <[email protected] <mailto:[email protected]» 3 EFTA_R1_01796250 EFTA02605652

Cc: 'Richard Kahn' Subject: RE: EM Jeffrey EM Update FX Spot Changes 1 Week 1 month 3 month 6 month 1 yr BRL -2% -2.58% -6.18% -18.02% -19% RUB 0.45% -7.11% -7.75% -16% -12% 4 EFTA_R1_01796251 EFTA02605653

TRY 6.08% -21% -26.44% -38.21% -42.00% ▪ TRY hit a high (strong) level of 5.7100 yesterday during a conference call with the finance minister ▪ Down 6% today at 6.0600 • 1yr Implied interest rate still around 28-29% • Turkey open half day on Monday and then closed for the rest of the week (EID) • RUB and BRL bond prices remain very stable Here is an interesting RUB Cashless Risk Reversal: " Buy 6 month 65 RUB Call (cost 2.00% if you wanted to just buy the RUB call) • Sell 6 month 73.50 RUB Put with an at-expiry knock in at 78 • Red Line is the RUB put strike • White line is the knock in level (we need to be weaker/above the white line at expiry for the short RUB put to knock-in — so down 16% from here) • BIGGEST RISK: Another round of US sanctions in the coming months targeting state controlled banks which would freeze their USD transactions or a hawkish speech by Powell at Jackson Hole next week. Paul Barrett Alpha Group Capital LLC 5 EFTA_R1_01796252 EFTA02605654