Morgan Stanley Traders Pitch Shorting Kronos Worldwide’s Bonds

Morgan Stanley’s credit trading desk is pitching a bet against bonds issued by Kronos Worldwide Inc, a titanium-dioxide manufacturer that was already struggling before the war in Iran sent energy costs soaring.

The traders started pushing the short on the US-headquartered firm’s €426 million ($494 million) notes due in March 2029 to investors last month, according to people familiar with the matter. The desk has since reiterated its view, even as the bond price tumbled, the people said, requesting anonymity to discuss a private matter.