SocGen Says Buy Hungary’s 2026 Forint Bond on Monetary Easing
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
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Phoenix Kalen (Societe Generale SA)
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UUID: 7947283
(Bloomberg) -- Societe Generale recommends investors buy Hungary’s local-currency bonds due December 2026 FX-hedged, targeting a 60bps move lower to 1.98% in 6-12 months as central bank to push longer rates lower, strategist Phoenix Kalen says in emailed note.
- Stop loss at 2.82%
- “The National Bank of Hungary clearly communicated its desires for lower BUBOR interbank rates, lower rates and bond yields across the curves, and flatter yield curves”
- “Tools may include longer-tenor FX swaps, or subsidized long-dated IRS facilities, or targeted incentives for local buying of long-dated Hungarian government bonds”
- “Policy credibility of the central bank is strong on this particular focus to deliver lower long-term bond yields”
- “Hungary’s robust economic recovery, the convergence narrative with core Europe, and upgrade pressures on its credit ratings are further reasons why we believe that more investors will want to participate in Hungarian government bonds in the future”
- NOTE: Hungary Reboots Monetary Easing to Confront Stronger Forint
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Phoenix Kalen (Societe Generale SA)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283