Turkey Corporate Bonds Need a Rescue Plan, Fund Manager Says
- String of defaults and restructuring cloud market outlook
- Azimut proposes that industry set aside cash pile for bailouts
A traffic jam fills a highway in the Levent business district of Istanbul, Turkey, on Tuesday, July 19, 2016. Turkey's central bank slowed the pace of interest rate cuts at its meeting on Tuesday after the failed coup attempt triggered a sell-off in the currency and sovereign debt.
Photographer: Ismail Ferdous/BloombergThe Turkish lira corporate bond market is in the doldrums and the nation’s largest independent fund manager says the government needs to step in to get it going again.
A string of defaults and restructurings has dampened investor appetite for the 18 billion lira ($5.2 billion) market in corporate debt, issuance has slowed, and a borrowing binge by the Treasury has increased competition for a limited savings pool. The general manager of Italy’s Azimut Holding Spa’s local unit says the government should mandate the sector to establish a rescue fund to help troubled firms and restore investor confidence.