JPMorgan backs Sri Lanka bonds on bets that crippling crisis to ease

Thursday, 19 May 2022 00:27 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): US investment bank JPMorgan backed Sri Lanka’s crisis-hit Government bonds on Wednesday, saying recent political changes in the country should gradually improve its strains and help its talks with the International Monetary Fund.

Adding an ‘overweight’ – effectively a buy recommendation – JPMorgan analysts said: “political stability should pave the way for bonds to move higher from near all-time lows.”

Sri Lanka is officially now in default as a so-called “grace period” to make some already – overdue bond interest payments expired on Wednesday.

“We think this stability should result in both IMF discussions and the process of appointing legal and financial advisors moving forward,” JPMorgan added.

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