Inflation rise in Turkey threatens nascent corporate bond market

Turkey: Almost a market

Istanbul: bond market potential

2011 was meant to be Turkey’s graduation year. In the optimistic scenario, a relatively calm general election (scheduled for June 12) was due to be followed by a series of ratings upgrades that would enable Turkey to finally fulfil its ambition of being an investment grade country. Running alongside this, it was hoped the domestic corporate bond market – in many ways still embryonic – would expand rapidly.

But external events have conspired once again against Turkey. When the turmoil in the Middl