EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Research evidence excerpt

EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Update

June 23, 2026 03:56 PM GMT

Morgan Stanley & Co. LLCMEM Sovereign Credit Strategy | Global Simon Waever

Strategist

Rich & Cheap Watch Simon.Waever@morganstanley.comEmma C Cerda +1 212 296-8101

Emma.Cerda@morganstanley.com +1 212 761-2344

EMBIG-D widened by 3bp to 228bp in the past week (1W). Morgan Stanley & Co. International plc+

Spreads tightened the most in BB and tightened the least in B Neville Z Mandimika

rating categories. Region-wise, spreads widened the most in SSA StrategistNeville.Mandimika@morganstanley.com +44 20 7425-2509

and tightened the most in Asia. Morgan Stanley India Company Private Limited+

Guru Sharan Agrawal

Country level: The richest countries based on 6m Z-scores across each rating

category are currently Poland, Kazakhstan, Colombia, and Argentina. The cheapest Guru.Sharan.Agrawal@morganstanley.com +91 22 6995-3035

are Abu Dhabi, Indonesia, Serbia, and Bahrain. See Exhibit 1.

EM Sovereign Market Composite

5s10s spread curves: IG curves steepened by 3bp to 30bp and HY curves steepened Sovereign Ratings and Market Pricing – IG and

by 1bp to 53bp in the past 1W on aggregate. On an absolute basis, Kenya and Angola BB

are the steepest, while Qatar and Oman are the flattest. On a 6m Z-score basis, Sovereign Benchmark Bond Valuations

Uruguay and El Salvador are the steepest, while Armenia and Turkey are the Bond 5s10s Curves Snapshot

flattest. See page 13. EUR vs. USD Bonds Snapshot

CDS Snapshot

10s30s spread curves: IG curves steepened by 1bp to 22bp and HY curves

ESG Snapshot

steepened by 4bp to 40bp in the past 1W on aggregate. On an absolute basis, Egypt

Defaulted / Flat Trading Bonds Overview

and Pemex are the steepest, while Kenya and Indonesia are the flattest. On a 6m Z-