Turkey Bond-Guarantee Plan Leaves Foreign Investors Underwhelmed

Source:Bloomberg Date:10May2022

The proposal would provide interest-free lira funding for investors to buy local bonds with a guaranteed 4% return in dollar terms, though discussions are ongoing and details could still change, Bloomberg News reported April 28.

That return isn’t high enough and the two-year lock-up period is a deterrent given the raging inflation facing Turkey, according to fixed-income portfolio managers.

Here’s what money managers and strategists are saying: