Amundi Sees Turkey Turmoil Worsening After Markets Nosedive
- Turkey risk premium should exceed South Africa, Brazil: Amundi
- Lira tumbled to new record after opposition leaders arrested
This article is for subscribers only.
For Europe’s biggest money manager, the stampede that sent Turkey’s markets into a tailspin last week may be just a taste of things to come.
As pro-Kurdish party leaders were detained amid a crackdown against President Recep Tayyip Erdogan’s opponents Friday, the currency extended the worst three-month slump in emerging markets to an all-time low, and the country’s 10-year yields climbed to the highest of any developing economy outside Latin America. With political risk now exceeding South Africa and Brazil, investors should be wary of looking for bargains too early, according to Abbas Ameli-Renani of Amundi Asset Management.