By Nuran Erkul
LONDON (AA) – The US-based asset management firm saw a period of strong performance in Turkish local bonds that can supplement Turkish lira positions, Nick Eisinger, co-chairman of Vanguard, said.
Vanguard announced in January that it would reinvest in Turkish lira-denominated government bonds.
"Inflation hit a peak and now should start to fall. This will affect the entire lira bond curve, especially the five-year maturity," Eisinger said.
Moreover, a Deutsche Bank report released on Monday stated that the Turkish lira is by far the best-performing global currency.
The report stressed that this success is just the beginning, and local bonds continue to provide extremely attractive entry levels.
Furthermore, a Swiss asset management firm announced last week that it has begun purchasing long-term lira bonds as investor demand for Turkish bonds and the lira has increased.
*Writing by Sahika Olgun from Istanbul