The Bloomberg Economic Network quoted officials from major investment firms in the world that the economic turmoil in Turkey this year from the devaluation of the currency and reduce its credit rating and US economic sanctions, paved the way to make it one of the most attractive countries to invest in next year.
In a seminar held last Thursday at the Emerging Markets Traders Association’s annual meeting in New York, Shamila Khan (emerging markets debt manager at Alliance Bernstein a $ 500 billion investment group) and Harry Hararhan (Chief Executive Officer of NWI Management) said that the Turkish bonds are the best investment for 2019.
Shamila Khan said she preferred the banknotes denominated in lira, while Hararehar preferred US dollar bonds, especially in the banking sector.
In turn, the US network pointed out that there are some signs that the tide began to turn, as the Turkish lira rose by 30%, since the drop to the lowest level in August, more than any other major currency followed by Bloomberg, despite the expectations of the Moody’s Investors Service agency to shrink the growth of the Turkish economy during the first half of 2019.
Jim Barino, head of emerging-market debt at New York-based Schroders Asset Management, said he recommends a basket of short-term non-investment bonds from developing countries. He said: “I keep it and turn to sleep, and will outperform almost every other asset class.”
Pablo Goldberg, Black Rock’s portfolio manager, said he expected emerging market debt to be more attractive next year than US high-yielding instruments due to slow growth in the United States.