Erdogan Crisis Driving Bond Risk Closer to Russia: Turkey Credit
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Turkish Prime Minister Recep Tayyip Erdogan’s stand-off with protesters is threatening to send investor perceptions of the nation’s credit risk above Russia’s for the first time in seven months.
The cost to protect against losses in Turkish debt using credit-default swaps rose 57 basis points since May 31, when anti-government demonstrations erupted, to 188 today, according to data compiled by Bloomberg. That’s narrowed the gap with higher-rated Russia to seven basis points from 25 at the end of last month, the data show.