Amundi warns Senegal bonds overvalued
Amundi warns that Senegalese bond prices fail to reflect looming debt restructuring risks. The asset manager expects external bondholders to bear the heavy burden of adjustment. Senegal aims to secure an IMF program by addressing high debt levels.
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Senegal bonds are overvalued as the country faces a debt restructuring that will likely shift heavy losses onto bondholders, AMUNDI SA said on Thursday afternoon. The West African nation recently announced plans to return its finances to a sustainable footing following years of misreported debt estimated at $13B. External bondholders may bear the brunt of the adjustment because authorities plan to exclude local currency debt from the operation.
