Fixed Income Analysis /

Weekly Credit Risk Monitor

    Stuart Culverhouse
    Stuart Culverhouse

    Chief Economist & Head of Fixed Income Research

    Tellimer Research
    12 July 2018
    Published byTellimer Research
    Credits in Focus: Turkish bank valuations. The average yield on the 72 Turkish bank Eurobonds we’ve tracked is over 7.5% (unweighted) and only a handful of bonds are quoted above par. Spreads are no longer at the wides though – in many cases, indicative mid z-spreads are more than 100bps off the wides. Having said this, questions from investors suggest that there may still be concerns about certain 'tail risk' scenarios, such as banks breaching minimum capital ratios, writing off very large loans or triggering PONV language on subordinated bonds.