Morgan Stanley Splits With Nomura Over Emerging-Market Outlook
- MS bulls see a lot to like in growth, dollar prospects, yields
- Nomura alarmed about balance-of-payments pain later this year
UBS's Yu Says Tailwinds Are Emerging in Various Places
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The rout that took emerging-market debt spreads to a 16-month high is provoking very different reactions from two financial titans.
Morgan Stanley is all in on sovereign bonds from developing nations, saying that the tumble this year is providing an attractive entry point to load up on undervalued securities. Nomura Holdings Inc. takes the opposite view, namely that the slump is just a small preview of the outsize pain that investors can expect during the rest of the year.