Back on track
Turkey’s economy surprised positively by outperforming most of its emerging market peers in 2015. Can it now maintain that momentum by pushing through the kind of reforms the country wants and needs?
Star turn: In the fluid world of emerging markets, Turkey has this year presented more opportunities than its CEEMEA peers for investors to indulge their views.
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Turkey’s economy surprised positively by outperforming most of its emerging market peers in 2015. Can it now maintain that momentum by pushing through the kind of reforms the country wants and needs?
Turkey’s banks have offered one of the few consistent issuance bright spots in 2016’s CEEMEA primary market, and now they are pushing the boundaries into new structures and investor bases at a rapid rate.
After years of promise, the Turkish covered bond market finally delivered last month with a debut from VakifBank.
In a market as volatile as Turkey, it is often not enough to get the direction of the market right – it is all about knowing when to act. Fund managers have enjoyed a stronger year in 2016 than they did last year, but having ridden the bull market a long way up they are now asking how much value is left.
Against a backdrop of constant political risk, Turkey’s belated re-entry into the international bond markets following a 10-month absence was well received, cementing its place as a star performer in CEEMEA.
Political instability and wider macroeconomic concerns have kept the Turkish equity capital market quiet for nearly two years, but the underlying pipeline and investor appetite is still strong and just waiting for the right trigger.
In the stop-start world of Turkish politics and finance, there has been one constant over the last couple of years: an increasing appetite to lend against the country’s healthcare development plans. Healthcare PPPs dominate the Turkish financial landscape and they will continue to do so, but other sectors are also set to vie for attention.