Negative divergence in Turkish private sector bonds

More than 20 Turkish private sector bonds included in the private sector index compiled by Bloomberg from nearly 40 developing countries lost 3.6 percent in May and exhibited the worst performance along with the Philippines.

While Turkish private sector bonds, which differed positively in May, were not included in the index, Akbank’s 500 million dollar subordinated bond with a maturity of June 2031 suffered the biggest loss.

The average yield of Turkish corporate bonds reached its highest level in seven months with 11.4%. CDSs surged after President Recep Tayyip Erdoğan achieved a first-round result with stronger-than-expected support.