What’s an emerging market got to do to convince the rating agencies that they are investment grade? In Turkey’s case, quite a lot.
As Bloomberg reports today, of 19 emerging market bonds it has tracked over the past month,Turkey’s performed the best of all. Yields on benchmark two year lira-notes fell 69 basis points to 7.78 per cent, adding to falls of 323bp so far this year. This involved foreign investors taking their holdings of Turkish debt to a record $50.6bn.
While Turkey might be the best performing EM debt market, not to mention the largest eastern European debt market, it is far from being considered the safest. Despite the appetite among investors, Turkey remains the second highest yielding of the emerging markets surveyed by Bloomberg, with Brazil keeping it off the foot of the table.
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