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Morgan Stanley Says Argentina Bonds Price In Too Much Pessimism

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Morgan Stanley Says Argentina Bonds Price In Too Much Pessimism The selloff in Argentina’s debt amid a dramatic shift in expectations ahead of the country’s presidential election next year has gone too far, according to Morgan Stanley. The country’s sovereign bonds currently imply a 41% to 52% probability of the bank’s bear-case scenario, up from just 11% to 20% three months ago, strategist Simon Waever wrote in a report Tuesday.

Morgan Stanley Says Argentina Bonds Price In Too Much Pessimism The selloff in Argentina’s debt amid a dramatic shift in expectations ahead of the country’s presidential election next year has gone too far, according to Morgan Stanley. The country’s sovereign bonds currently imply a 41% to 52% probability of the bank’s bear-case scenario, up from just 11% to 20% three months ago, strategist Simon Waever wrote in a report Tuesday. That scenario, he says, assumes a two-thirds probability that the South American nation muddles through and a one-third chance of default.
Morgan Stanley (ORG) Argentina (LOCATION) Simon Waever (PERSON) South American (ORG)
Originally published by Bloomberg Markets Read original →