Morgan Stanley Turns Gloomier on Emerging Market Debt
- Bank is now bearish on EM Eurobonds as well as currencies
- MS analysts say Ghana’s and Ukraine’s dollar bonds may suffer
Pedestrians pass by stalls at Makola market in Accra, Ghana.
Photographer: Nicholas Seun Adatsi/BloombergThis article is for subscribers only.
Morgan Stanley has turned bearish on emerging-market Eurobonds, saying that a “surprisingly hawkish” Federal Reserve and worsening trade tensions are piling pressure on developing nations.
“The backdrop for EM has worsened in several ways in a short space of time,” analysts, including London-based James Lord and Jaiparan Khurana, said in a note on Friday. “All this justifies a more cautious stance and will likely worsen an already weak global-growth backdrop.”