After buying a bank in Turkey last year it was a logical step for Sberbank to start borrowing in the Turkish currency. The Russian state savings bank raised 550m Turkish lira ($304m) in an inaugural lira-denominated eurobond this week and said it would use the proceeds to support the operations of its Denizbank Turkish subsidiary.
Sberbank placed the five year “eurolira” bond at 7.3 per cent, slightly below the 7.5 per cent price guidance for the issue that was executed on Monday after a one-day roadshow. Continue reading »
Mrs Watanabe just can’t get enough of Turkey these days.
Last year, Japan’s legion of retail investors (dubbed Mrs Watanabe because women mostly manage the household savings in Japan) poured more money into Turkish lira-denominated bonds than any other type of overseas currency bonds – overtaking even the Brazilian real and the Australian dollar. Continue reading »
Mrs Watanabe is back. The fabled Japanese housewife investor, burned by her love affair with the Brazilian real, appeared to have rediscovered a taste for the carry trade.
The object of her affection this time? The Turkish lira.
The appetite for Turkish and lira-linked assets from yield-hungry Japanese retail investors has grown by leaps and bounds since the start of the year. From just $136m in 2010, lira-denominated Uridashi bond issuance – as foreign-currency debt sold to Japanese retail investors is called – reached nearly $2bn in the first six months of this year. Continue reading »