U.S. Bond Investors Forgive Turkey Risks in Search of Yields
- Inflows to local bonds picked up in August: central bank data
- Inflation, political turmoil key risks for Schroder’s Brown
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Military uprising, war across the border and the threat of a credit downgrade are not deterring investors from Turkey’s bonds, with U.S. money managers Eaton Vance Corp. and Newfleet Asset Management LLC among those sticking to or raising bets.
More than $4 billion has flowed into the nation’s local-currency bonds this year, with $638 million arriving since the botched coup in July and most of that in the week ending Aug. 26, according to the latest central bank data. Net inflows to bond funds investing in lira and dollar-denominated Turkish securities were $281 million in August, according to data compiled by EPFR Global.