Morgan Stanley Sours on Kenyan Debt as Angola Offers Opportunity
- Firm’s strategists cite fiscal risk of Kenya’s recent protests
- Oil, more currency stability to support Angola’s bonds: MS
Kenyan opposition supporters react and throw stones towards Kenya Police officers during demonstrations in Nairobi, Kenya on July 12.
Photographer: Luis Tato/AFP/Getty Images
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Morgan Stanley is turning cold on Kenyan assets as deadly protests rattle the nation’s capital, urging investors to look south for opportunities in Angola after a recent currency devaluation.
Strategists including Neville Mandimika are turning less bullish on Kenya’s international bonds as recent social unrest forces businesses to close, threatening tax revenue and spurring fiscal risks. At the same time, they’re upgrading their view on Angolan notes due to signs of a more-stable currency, improved fiscal dynamics and attractive valuations.