Turkey’s slide continues; Turkish banks plunge another day; Argentina underperforms LatAm

By Rebecca Melvin

New York, Aug. 13 – Turkey’s financial situation continued to deteriorate on Monday with the lira dropping another 10% on the day to 6.9 to the U.S. dollar but pulling back some from a drop to as low as 7.24 overnight.

Turkish bank credits plunged for a second straight day. Akbank Turk AS’ 7.2% notes due 2027 were bid last at 58, which was down more than 10 points from earlier Monday trades at 68.5. The bonds gapped lower through last week after having traded at the end of July at about 85.

Yapi ve Kredi Bankasi AS’ 6.1% notes due 2023, of which $500 million priced in March, fell on Friday and again on Monday, quoted last at 70 bid, 73.95 offered, which was down from 82.15 at the outset of Monday. A week ago, the bonds stood at almost 88, and in July they were over 90.

Yapi Kredi’s 5.85% notes due 2024 were last quoted at 68˝ bid, 70.40 offered, which was down from 76.30 at the start of the day and at 83 a week ago.

Elsewhere, Argentina, which saw the yield on its 10-year bonds bid at 10% early Monday, and Brazil was notably lower, a New York-based market source said.

Meanwhile, the rest of foreign exchange across the Latin America region was stable to unchanged.

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