Why is Turkey out of the international bond market, and whether it's worth investing in its bonds?

July 30, 2020
Bond Map: EM Sovereign Issues of 2020 in USD

Turkey hasn't entered the international bond market since February 2020 when it placed 4.25% 13mar2025 and 5.25% 13mar2030 notes. Since then, it has been issuing bonds only in the domestic market. 

However, even if it places Eurobonds in the international market, there are risks for investors. Among them, decreasing FX reserves (the lowest levels in 10 years) and lira weakness. 

Although the sovereign can keep flooding the reserves via swap lines with other central banks and a banking regulation that obligates banks to increase reserves, there are no clues when the country's reserves will run out.

Company — Turkey
  • Full name
    Republic of Turkey
  • Registration country