HALISTER1: Turkey Borrowing Drive Could Push Yields Higher: Garanti Yatirim

Turkey Borrowing Drive Could Push Yields Higher: Garanti Yatirim

(Bloomberg) -- Investors should take advantage of any drop in yields to reduce portfolio risk, Melis Ozturk and Tufan Comert, analysts at Istanbul-based broker, write in e-mailed report.
  • Say Turkish Treasury plans to increase its roll-over ratio to 100% in 2017, the highest level since 2009, and this increased supply will pressure yields
    • “Increasing the amount of debt might push yields higher in the bond market. This could also pressure the corporate bond market in Turkey”
  • Expect foreign investors will reduce their positions gradually toward end-2016, also “pushing yields higher”
  • See corporate borrowing costs increasing in coming period, don’t expect corporate issuance to increase in 2017
  • NOTE: Turkey Treasury Plans to Borrow $6b From Global Markets in 2017 NSN OFX0YX6JIJW8
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Tufan Comert (Turkiye Garanti Bankasi AS)

To de-activate this alert, click here

UUID: 7947283