BNY Cautions Against Excessive Optimism in Turkish Market
- Regional conflict could shake Turkey’s economic stability: BNY
- Global investors have touted attractive lira and bond trade
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BNY is warning that the influx of foreign capital into Turkish assets may be overdone, with investors likely ignoring pitfalls that could prompt a reversal.
Overseas investors have poured billions of dollars into Turkish assets this year, many banking on the currency appreciating. However, sky-high borrowing costs and geopolitical tensions pose substantial threats to this crowded currency trade, according to Bob Savage, the bank’s head of markets and strategy.