Morgan Stanley Fixed-EM Sovereign Credit Strategy EM Technical Watch Cash, Meet...-106734637

MFebruary27,202408:12PMGMTMorganStanley&Co.LLCUpdateEMSovereignCreditStrategyGlobalSimonWaever+1212296-8101+1212761-2344EMTechnicalWatch:Cash,Strategist+44207425-3282MeetPrimarySimon.Waever@morganstanley.com+44207425-2509Supplycontinues:EMsovereignsupplyhascontinueditsverystrongmomentum,EmmaCCerdacontinuingtobeatrecordYTDsovereignissuanceatUS$65.6bnYTD,38.8%ofourtotalissuanceexpectationforthisyearandUS$12.5bnaboveissuanceatthispointStrategistlastyear.Issuancehascontinuedtobemetwithextremelystrongdemand,withEmma.Cerda@morganstanley.comnewissueconcessionsaveraging2bpforIGissuersand-7bpforHYissuers.Newissueshavealsoperformedverywellpost-issuance,whichweseeascontributingtoMorganStanley&Co.Internationalplc+strongfundalphainthepasttwomonths,of20bpand55bp,respectively.HYissuancehascomebackwithfiveHYissuershavingcometomarketinFebruary.PascalNBodeKenya'sissuancewithacouponof9.75%wasapositivesignformarketaccessforlower-ratedcreditsgoingforward.WealsohighlightPanama'sthree-trancheStrategistissuancethatwasmetwithverystrongdemanddespiteaweakfundamentalpathPascal.Bode@morganstanley.comandcausedtheexistingcurvetorallyinthesecondarymarket.PotentialupcomingissuersincludeCroatia,AbuDhabi,thePhilippines,andQatarintheIGspace,andNevilleZMandimikaOman,theDominicanRepublic,Serbia,Uzbekistan,andColombiaintheHYspace.StrategistDrawing...