The Emerging Markets business includes arbitrage, directional trading and special situations investing in both the local market and external debt markets:

• Arbitrage includes: pairs trading arbitrage, where Marathon actively exploits pricing disparities that occur between similar securities issued by the same sovereign or corporate entity; yield curve arbitrage, whereby the group seeks profits due to the changing shape of the yield curve; and relative value arbitrage, which attempts to capture price discrepancies that exist between related credits.
• In directional trading, the group takes outright long or short positions in an attempt to capitalize on strong technical swings due to volatility and resulting variations of price.
• Marathon participates in special situations, such as bulk purchases of bank loans or distressed debt that typically require significant research to evaluate the opportunity.

• Marathon elects to take either a passive or active role in restructuring(s) in an attempt to find an acceptable solution with regards to the capital structure of the company.