Vanguard Group Announces Dealings with Turkish Government Bonds

Vanguard Group Announces Dealings with Turkish Government Bonds

Vanguard Group’s Decision

The giant American investment fund group, Vanguard, announced its decision to deal with Turkish government bonds. This decision came based on recent developments in the Turkish economy.

Market Analysis

According to Nick Eisinger, Head of Fixed Income in Emerging Markets at Vanguard, Turkish domestic bonds are very rare among foreign investors. However, considering the movements of the Turkish Central Bank’s interest rate policy and the course of inflation, it was decided to deal with Turkish government bonds.

Changes in the Turkish Economy

Eisinger described the changes in the overall economic policies in Turkey as a “series of very positive developments”. He added that this change should always be there to ensure improvement in the fundamentals of the Turkish economy and easy access to financing.

Credit Rating Expectations

In the context of his emphasis on the need for the current changes in monetary and financial policy to continue, Eisinger said: “We expect Turkey to get upgrades in the credit rating in the near future. However, we do not expect it to return to the investment grade for some time.”

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Return to Investing in Turkish Bonds

In recent news, “Pimco”, the giant of investment in the world, returned to investing in Turkish lira bonds again in mid-2023. The company confirmed that Turkey is on its way to regain its credit rating from the investment grade, indicating that Turkey can return to the status of an investable country within 5 years.