Morgan Stanley: Sell 2023 bonds, buy 2042 paper
Morgan Stanley advised investors on Monday to sell Greek bonds due in 2023 and buy the nation?s securities that mature in 2042, betting the shorter-dated debt will underperform, should the nation?s economic position deteriorate.
?The front end of the curve has remained resilient,? Morgan Stanley strategists Paolo Batori and Robert Tancsa in London wrote in an investor report.
It?s ?exposed to the same fundamental risks as the long end.?
Buying warrants with payments linked to Greece?s gross domestic product may provide a hedge for the trade, they wrote.
[Bloomberg]
