Halister News

(Bloomberg) -- “The recent agreement with the rebels has considerably reduced the risk of a wide-spread crisis” in Ivory Coast and the sovereign bond valuations are “attractive,” Societe Generale analyst Regis Chatellier comments in note to clients.

• While cocoa prices of ~$1,900/ton are near historical lows, downside “is limited”
• “Ivorian bonds are one of the cheapest among EM and they should outperform once the new sovereign bond is issued”
  • NOTE: May 16, Ivory Coast Soldiers End Mutiny as Government Pledges Payout Link
• Ukrainian exposure reduced to “light overweight”
  • “The fiscal account has been deteriorating and public debt/GDP is fast approaching 90%”
  • “The country has massively outperformed the index in the past four weeks, so that valuations have become less attractive”