Goldman Says Pessimism On Egypt’s Dollar Bonds Is Overdone
- Lots of upside in distressed sovereigns: Goldman’s Trivedi
- Pictet’s Barton sees returns backed by multilateral support
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The pessimism priced into Egypt’s dollar bonds is overdone, according to Goldman Sachs Group Inc. and Pictet Asset Management, with the two banks saying they expect the nation to avoid default and perform well for investors.
Egypt’s dollar notes have declined 1.7% in January, their worst monthly performance since August. Moody’s Investors Service cut Egypt’s credit outlook to negative from stable earlier in the month, while the pound’s relentless slide in the black market has added to bearish sentiment as anticipation for another currency devaluation builds.