EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Research evidence excerpt

EM Sovereign Credit Strategy | Global Rich & Cheap Watch

Update

July 28, 2026 02:27 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 4bp to 242bp in the past week (1W). Morgan Stanley & Co. International plc+

Spreads widened the most in B and widened the least in A rating Neville Z Mandimika

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

and widened the least in Sub Saharan Africa. 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, Peru, Bahamas, and Barbados. The cheapest are UAE, Guru.Sharan.Agrawal@morganstanley.com +91 22 6995-3035

Paraguay, Serbia, and Bahrain. See Exhibit 1.

EM Sovereign Market Composite

5s10s spread curves: IG curves steepened by 3bp to 28bp and HY curves steepened Sovereign Ratings and Market Pricing – IG and

by 4bp to 49bp in the past 1W on aggregate. On an absolute basis, Kenya and BB

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

basis, Uruguay and Brazil are the steepest, while Nigeria and Bahrain are the flattest. Bond 5s10s Curves Snapshot

See page 13. EUR vs. USD Bonds Snapshot

CDS Snapshot

10s30s spread curves: IG curves steepened by 2bp to 22bp and HY curves

ESG Snapshot

steepened by 1bp to 34bp in the past 1W on aggregate. On an absolute basis, Egypt

Defaulted / Flat Trading Bonds Overview

and Angola are the steepest, while Kenya and Bahrain are the flattest. On a 6m Z-