Morgan Stanley Says Buy Salvadoran Bonds Battered by Bitcoin Bet
- El Salvador’s debt has been ‘overly punished’ by markets
- Bonds could rebound to 44 cents on the dollar by year end
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Morgan Stanley is ready to scoop up battered bonds from El Salvador, which are some of the worst-performing notes this year as the president’s bet on Bitcoin backfires.
The government’s $7.7 billion in eurobonds have been “overly punished” by the market despite El Salvador having better metrics than other distressed peers, Simon Waever, the global head of emerging-market sovereign credit strategy at the bank, wrote in a note Tuesday.