From: Sent: To: CC: Xavier Avila 10/24/2017 3:58:07 PM Paul Barrettil Stewart 0ldfield [ ; Martin Zeman Joshua Shoshan Subject: [ /IDS: ARS Lebac DB Pass-through Note Attachments: DB_SpecialReport_Argentina_0ct17.pdf Paul, find below the details of the Lebacs MS denominated offshore structure we discussed briefly the other day. We are currently in the process of bookbulidng the below note, although is still not completely guaranteed we will issue it as we are finalizing internal approvals and total size we raise. We also attach a proposal for hedging it in an asymmetric what that will give you equivalent USD yields although not fully hedged. Finally, a paragraph on the Argentina situation after the elections of last weekend and a report DB Research published last week on the Argentinean overall political situation and assets. Let's discuss when you have a second. Thanks Xavier ****• *********• *******••• • *********• *AIM ****• Argentina: Position for further upside The results of Argentina's mid-term elections confirm a very favorable scenario for President Macri's governing coalition in coming months and possibly years. "Cambiemos" had a stronger-than-expected national performance, having won 13 provinces, including the five largest electoral districts (or about two-thirds of the population), securing its place as the first minority party in Congress and obtaining veto power against initiatives of the opposition. In the critical Senate race of Province of BA, Bullrich's lead over former president Cristina Fernandez de Kirchner was larger than expected. Moreover, as most opposition leaders lost and other competitors also emerged weaker the bar is even lower for the incumbents to pass legislation. This means a strong boost for Macri's reform agenda and his bid for the 2019 presidential race. Asset prices rallied on Monday following these results, but at a measured pace, suggesting market participants have largely positioned for