‘Yes’ Vote Gives Lira Assets Rare Break From Political Pressure
- Win for ‘yes’ camp seen ending months of political wrangling
- Attention turns to policy making after Erdogan triumphs
Macquarie's Idris Doesn't See Full Scale Erdogan Victory
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President Recep Tayyip Erdogan got what investors always feared: more control over policy making. But that won’t stop them from taking advantage of some of the cheapest assets in emerging markets.
The lira soared as much as 2.5 percent and bonds jumped with stocks after Erdogan’s referendum victory on Sunday, even though his win was branded unfair by critics at home and abroad. The currency pared its advance by about 1 percentage point, but its one-week implied volatility, which was the highest in the world before the vote, fell the most since January on a net basis, and its one-week implied yield was one of the steepest in emerging markets.