(Bloomberg)--Morgan Stanley turned more bearish on sovereign and corporate debt in emerging markets as declines in their currencies accelerated and funding costs increased.

The U.S. bank cut its recommendation on foreign-currency bonds to “sell” from “reduce,” and on local-currency notes to “reduce” from “hold,” strategists led by New York-based Rashique Rahman wrote in a report dated yesterday. Argentina’s peso and Turkey’s lira have led declines in exchange rates of developing economies this year as the Federal Reserve began paring stimulus that had fueled demand for their assets.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access