Eisinger, the portfolio manager responsible for the company’s strategy in emerging markets, stated that they continue to monitor Turkish assets for the long term.
He mentioned that they are keeping an eye on long-term positions in local currency, saying, “We are seeing good performance in local bonds that can complete the TL positions. Inflation has now peaked and should start to decline. This will particularly affect the entire TL yield curve for a 5-year term.”
Vanguard Decided to Reinvest in TL Denominated Government Bonds
This January, Vanguard announced its decision to re-engage with TL-denominated government bonds.
In a research note titled “Turkey Fixed Income: Now or Never,” published yesterday by Deutsche Bank economists, it was noted that since the interest rate hike in March, the Turkish Lira has been “by far the best-performing global currency.”
The note indicated that short-term bonds have experienced a strong rally so far, stating, “We believe this is just the beginning and that local bonds still offer extremely attractive entry levels.”
Last week, Swiss asset management firm Pictet Asset Management also announced it has started purchasing long-term lira bonds due to increased investor support for Turkish bonds and the lira.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
