Turkey’s private-sector bond market grows 68% in a year

Turkey’s private-sector bond market has grown quickly, reaching 1.03 trillion lira by Oct.

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Some bond defaults linked to events in the fund market have raised concerns.

The market is still relatively small compared with the economy and commercial lending, so it does not alone threaten the whole financial system.

But investment funds hold about one-third of the bonds, making the market more exposed to sudden changes in investors’ ability or willingness to sell.