Turkey $9 Billion Bond Rout Signaled by Swaps After Botched Coup

  • Turkey CDS spike past junk-rated Russia, Brazil since crisis
  • S&P Global Ratings cut Turkey to BB from BB+ on Wednesday

The thwarted coup attempt in Turkey is leaving derivatives traders with little doubt the country’s three-year sojourn in investment grade is coming to an end, potentially triggering a fire sale of almost $9 billion of bonds.

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