EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Research evidence excerpt

EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Update

June 30, 2026 02:04 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 12bp to 240bp in the past week (1W). Morgan Stanley & Co. International plc+

Spreads widened the most in B and widened the least in BBB Neville Z Mandimika

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

MENA and widened the least 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, Hungary, Colombia, and Argentina. The cheapest are Guru.Sharan.Agrawal@morganstanley.com +91 22 6995-3035

Qatar, Indonesia, Serbia, and Bahrain. See Exhibit 1.

EM Sovereign Market Composite

5s10s spread curves: IG curves flattened by 1bp to 28bp and HY curves flattened by Sovereign Ratings and Market Pricing – IG and

1bp to 51bp in the past 1W on aggregate. On an absolute basis, Kenya and Angola are BB

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 Nigeria and Turkey are the flattest. Bond 5s10s Curves Snapshot

See page 13. EUR vs. USD Bonds Snapshot

CDS Snapshot

10s30s spread curves: IG curves flattened by 3bp to 18bp and HY curves flattened

ESG Snapshot

by 3bp to 36bp in the past 1W on aggregate. On an absolute basis, Egypt and Pemex

Defaulted / Flat Trading Bonds Overview

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