Secondary market yields spike for Turkish bank paper as market volatility takes toll
Deep discounts on Turkish financial institutions paper in the secondary market have allowed retail banks to pick up an extra 140bp-150bp in yield over primary pricing.
"Its all negative carry," said a loans banker close to several Turkish FIs. "The widening is basically a reaction to the increased cost of funds. The MLA banks dont want to sit on large take-and-holds so they dump it on the secondary market."
In March 2011, Akbank signed a
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