Morgan Stanley improves outlook on El Salvador’s deteriorated bonds.

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The multinational financier Morgan Stanley states that the outlook for El Salvadoran impaired bonds could improve, because “we see risk-reward” in the Salvadoran debt. El Salvador’s Eurobonds, debt issued in the international market, have been hit hard by uncertainty over whether the central government will have the capacity to pay the $800 million due at maturity in January 2023, coupled with risk from the adoption of bitcoin as legal tender. “El Salvador appears to have been excessively punished by the market” compared with other emerging economies, Simon Waever, an analyst at Morgan Stanley wrote in a paper published Tuesday.

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