Morgan Stanley Bet on Ukraine’s Debt Returns 47% in Three Months
- Morgan Stanley Investment Management bought Ukraine warrants
- Bond prices extended gains after mutiny in Russia over weekend
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A bet on exotic Ukrainian debt warrants held by Morgan Stanley Investment Management is offering some of the biggest returns across emerging markets in the space of three months.
A short-lived mutiny in Russia lifted Ukrainian assets this week on bets that any disarray among Russia’s top brass could benefit President Volodymyr Zelenskiy’s efforts to support the economy and carry out a counteroffensive. That upswing in prices included the GDP warrants — originally born from a 2015 debt restructuring — which Morgan Stanley has been holding, according to a disclosure earlier this year.