<table><tr><th>From:</th><th>Paul Barrett &lt;</th></tr><tr><td>Sent:</td><td>Friday, October 20, 2017 1:48 PM</td></tr><tr><td>To:</td><td>jeffrey E.</td></tr><tr><td>Subject:</td><td>FW: ECB QE much bigger</td></tr></table>

See the line in Yellow. That's why European HY=trades at the same level as 10yr US Treasuries. This will be a big trade f=r us next year.

Paul Barrett

Alpha Group Capital LLC

From: Torsten Slok
Sent: Wednesday, October 18, 2017 9:54 AM
Subject: DB: ECB QE much bigger

There are various w=ys of measuring the impact of QE carried out by the Fed, ECB, and Bal. One=simple comparison is to look at the size of QE relative to net issuance. T=is reveals how much additional "firepower" each central bank brought to the market in an attempt to lower long rates =nd narrow credit spreads and boost stock markets.

<=0:p>

For the Fed, Treasury purchases never exceeded Treasury=net issuance whereas for the BoJ QE was 3 times bigger than net issuance a=d for the ECB QE is currently 7 times bigger than net issuance.=span style="font-size:12.0pt">

<=o:p>

This difference =n QE magnitude across the G3 is an important reason why the ECB exit is li=ely to be a much bigger event for markets, see also my note last week looking at the $8trn in bonds yielding negative interest rates, chart inserted again at the bottom here.

<=0:p>

Let us know if you =ould like to add a colleague to this distribution list.<=p>

<o:p>
</o:p>

Torsten Slok, Ph.=.

Chief International=Economist

Managing Director</=pan>

Deutsche Bank Secur=ties



This communication may contain confidential and/or privileged information. =f you are not the intended recipient (or have received this communication =n error) please notify the sender immediately and destroy this communicati=n. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidde=.

Please refer to https://db.com/discl=sures <https://db.com/disclosures> for additional EU corporate and regulatory disclosures.

Deutsche Bank does not render legal or tax advice, and the information cont=ined in this communication should not be regarded as such.