Bond Traders Trim Bearish Turkey Bets on Possible Erdogan Defeat

  • Turkish dollar debt has beaten almost all its peers this month
  • Erdogan faces the toughest election of his political career
Recep Tayyip Erdogan

Photographer: Adem Altan/AFP/Getty Images

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Bond investors with bearish bets on Turkey are reassessing their views as a tightly contested election campaign threatens an end to President Recep Tayyip Erdogan’s two-decade rule — and his unconventional economic path.

Turkey’s dollar debt has outperformed all but one of its developing-nation peers this month as investors prepare for a possible reversal of Erdogan’s unorthodox policies, which have sparked the worst inflation crisis in decades and led to an outflowBloomberg Terminal of international capital from the $905 billion economy.