Updated

Updated · Bloomberg · Jun 5

Algebris Buys Turkish Bond CDS on €3.7 Billion Portfolio as Iran War Lifts Credit Risk

Updated

Updated · Bloomberg · Jun 5

Algebris Buys Turkish Bond CDS on €3.7 Billion Portfolio as Iran War Lifts Credit Risk

1 articles · Updated · Bloomberg · Jun 5

Algebris Investments has started buying default protection on Turkish bonds, marking a defensive turn by a fund manager that had previously been bullish on Turkey.
Gabriele Foà, who runs €3.7 billion from Milan for Algebris, said the Iran war has raised the probability of a Turkish credit event by adding strain to the economy.
Turkey’s vulnerability is being driven by a widening current-account deficit, higher energy prices and low foreign-exchange reserves, factors Algebris says also increase the risk of dollarization.
The move underscores growing investor concern that external shocks could hit Turkey’s financing position and sovereign credit profile.

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Is the Iran war the final trigger for Turkey's economic crisis, or a convenient excuse for deeper domestic policy failures?

With conflicting signals from ratings agencies and investors, is Turkey's economy on the verge of collapse or a major turnaround?

As foreign reserves vanish and the lira plummets, what unconventional options remain for Turkey to avert a complete economic meltdown?

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