The US-based asset management firm has highlighted a period of strong performance in Turkish local bonds as a lucrative opportunity to supplement Turkish lira positions, according to Nick Eisinger, co-chairman of Vanguard. Following an announcement made in January, Vanguard plans to reinvest in Turkish lira-denominated government bonds, expecting a positive shift due to a decline in inflation. Eisinger expressed optimism about the impact on the lira bond curve, particularly the five-year maturity.
Additionally, a recent report from Deutsche Bank emphasized the Turkish lira as the top-performing global currency, heralding the potential for further growth. The report emphasized that attractive entry levels in local bonds continue to entice investors seeking high returns. In line with this trend, a Swiss asset management firm has joined the market by purchasing long-term lira bonds, reflecting the increasing demand for Turkish bonds and the lira as a whole.