Turkey’s banks have generally come under significant pressure and have spurred contagion to other parts of Europe, as the country battles a long list of adverse macro conditions.
Bond investors in Turkish financial institutions have grown increasingly worried about the sustainability of several of the country’s banks’ ability to repay their debt.
Over the past three months, spreads on many banks’ five-year credit swaps ((CDS)) have mushroomed by anywhere from around 235bps to more than 350bps.
Akbank’s (AKBTY) five-year CDS, for example, has blown out by close to 355bps over the past three months, according