Pitscum,
Won't the volatility of the currency potentially offset any yield pick-up? Witness the USD/JPY carry trade.
And you've got political risk on its borders with the Kurds, and the problems with EU entry.
I don't think this is a Turkish Delight.
Grant.
Won't the volatility of the currency potentially offset any yield pick-up? Witness the USD/JPY carry trade.
And you've got political risk on its borders with the Kurds, and the problems with EU entry.
I don't think this is a Turkish Delight.
Grant.
A Dashing Blade
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Would have thought that any decent Stockbroker could facilitate this, they're all done thru Euroclear.
Note that the Turkish Govt is BB- and issues paper in both USD and TRL, it's obviously the latter that's gonna provide the yield eg the 14% of Sep 12 are trading 97.20 ish to yield a short 16%.
Yoo also have some AAA paper issued by people like the EIB (European Investment Bank) and Rabobank. This is TRL denoiminated and will yield less that the equiv Govt paper because of the rating improvement. eg IBRD 13.625 of May 17 currently 99.25-100.10.
It's a pretty well developed retail market, shout if more info required.
ok....whats that in english pls mister db??!!! i dont see turkey as the risk some ppl see it as as its on a mission to join the eu so its hardly going to own up to a bit of kurd clearing is it?? im sure the turks are very good at playing lilly white when it suits them
A Dashing Blade
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Many views make a market Pit etc
Remember that your buying & receiving in Turkish Lira so you've got an fx risk.
Bottom line . . . buying Turkish gov paper = more risk that they won't pay up (coupon or principal), but AAA+ then far less risk but a couple of % off your yield.
