Turkish lira bonds won’t be an attractive investment for at least six months amid higher-than-expected inflation and further weakening in the currency, according to Christian DiClementi, AllianceBernstein Holding LP’s director of emerging-market debt.
“We haven’t added Turkish lira bonds in material size across our fixed-income platform as we think the upcoming two quarters will be bumpy for Turkey,” partly due to interest-rate concerns, DiClementi said in a phone interview from New York. “Political pressure to ease is likely to be high, and premature easing could result in a weaker lira.”
