Sovereign Analysis /
Sri Lanka

Sri Lankan Eurobonds nearing fair value; retain Sell

  • Ongoing selloff has pushed bonds below our previous target price of US$60 for the SRILAN 6.85 03/14/2024s

  • But falling reserves, tepid policy response, and EM selloff have raised default probability and exit yields

  • We calculate a new target price of US$55 for the SRILAN 6.85 03/14/2024s; we retain our Sell for now

Sri Lankan Eurobonds nearing fair value; retain Sell
Patrick Curran
Tellimer Research
1 December 2021
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