The combination of stable government and an improving economy continues to keep Turkey on the right path. But as the country definitively emerges from the dynamics of crisis economics and with elections in the offing, what comes next? At the political and economic level, conditions remain benign. The recent spat over the choice of a new head for the central bank may have caused a few headlines, but the government remains generally sure-footed in its approach to political and economic policy. In the banking sector, the most recent headlines have...Read more
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The combination of stable government and an improving economy continues to keep Turkey on the right path. But as the country emerges from the dynamics of crisis economics and with elections in the offing, what is the outlook for the country's political and economic situation? Paul Farrow reports.
This year is likely to see continued consolidation in the Turkish banking sector, with foreign acquirers looking to establish themselves in this growing market. Paul Farrow looks at trends in the Turkish banking sector, and the foreign interest that the country's improved prospects have inspired.
Turkish ECM activity gained a strong response from international investors in 2005, which saw many new types of investor come into the market. A significant factor in the success of deals was that most were seen as cheap, and issue volume was only higher than the previous year due to government sales. With sellers sensitive to price and continued volatility in the market, is the upward trend sufficient to maintain ECM flows? Owen Wild reports.
Yield-hungry EM investors have been aggressively buying into local markets as tightening Eurobond spreads triggered a switch towards domestic bonds. But the big story in 2006 could be non-government issuance finding a ready audience in domestic funds. John Weavers reports.
The sovereign has continued to ride the wave of EM euphoria as ratings upgrades and buyback programmes underpin the asset class, drawing in new funds from cross-over and investment-grade accounts. But the prospects for non-sovereign issuance remain slight, as John Weavers reports.
The international Turkish lira bond market grew well beyond bankers’ expectations last year, but as the currency rallied, issuance fell by the wayside. This year has started solidly, with the market back on track as issuers and investors embrace the double-digit yields on offer. Plus there is a new source of support for the market as bankers expect strong reinvestment flows back into the currency. Helen Bartholomew reports.
This year is likely to see the development of a Turkish lira-denominated securitisation market. The big local banks are gearing up for it, while international investment banks and monoline insurers see exciting prospects for growth in the new market segments. Paul Farrow reports.
The Turkish syndicated loan market has matured considerably over the past year. The bank market has stretched tenors out to three years, while in the corporate market the country's privatisation programme has yielded a series of jumbo loans. With Turkish borrowers still offering good relative value, pricing going forward is likely to contract further, feeding lenders’ appetite for higher yielding corporate supply. David Cox reports.
These are interesting times for Turkey's banks. A boom in lending has been accompanied by real foreign interest in the sector, and the prospect of a domestic corporate bond market. IFR’s Paul Farrow spoke to Seniz Yarcan, executive vice-president at Industrial Development Bank of Turkey (TSKB), about developments at the bank and in the sector.