The banking giant says El Salvadoran bonds have been overly punished in the past months amid tightened liquidity, and the government is still far from defaulting on its debt.
Morgan Stanley called El Salvador-issued Eurobonds at their current price levels a buying opportunity partly due to the recent crypto crash that has battered the value of the country’s bitcoin holdings. Despite its severe debt, the government could continue “muddl[ing] through” for at least a year without failing to meet its bond payments, said the investment bank.
“Markets are clearly pricing in a high probability of the autarky scenario in which El Salvador defaults, but there is no restructuring.” The generally negative sentiment shed on the country’s outlook is reportedly linked to Bukele’s eruptive change of policies, ranging from adopting Bitcoin as legal tender to announcing the launch of BTC bonds. Despite the asset’s recent uptick, its value has plunged over 50% since El Salvador made its first purchase in September last year.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto Winter Is Behind, Damage Absorbed: Expert Mohamed A. El-ErianICYMI: financial expert Mohamed A. El-Erian believes the recent increase of Bitcoin signals the end of the cryptowinter BTC $BTC BTCprice
Read more »
Man dies after crashing car into a parked SUV in El CajonThe motorist struck a parked SUV on Broadway in El Cajon and later died from his injuries
Read more »
Wives of twins who helped bring down ‘El Chapo’ find themselves in spotlight, claiming they have immunity from federal hammerThe women have argued they cannot be prosecute because they were promised immunity by federal agents and the U.S. attorney’s office as part of their husbands’ cooperation against drug lord.
Read more »
Used cars costing consumers $10,000 more than 'normal' as inflation ragesIt's a bad time for consumers looking to buy a used car.
Read more »
Rich Americans Continue Borrowing Amid Inflation and Recession FearsAmerica’s rich only got richer during the pandemic, and it seems that the current economic turbulence may serve to benefit them more.
Read more »
Do you need a polio booster shot? New warning after 1st US case in nearly 10 yearsOfficials say vaccine hesitancy is on the rise and experts warn it's a situation that can lead to more outbreaks of diseases Americans haven't seen in a long time.
Read more »