Banks Race the Clock as Turkey Revives Bond Sales Before Fed
- Sovereign sale triggers flurry of issuance before Fed decision
- Banks need cash to support lending as deposits lag credit
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Now may not be the best time for Turkish banks to sell bonds internationally, but the flurry of issuers suggests most think conditions aren’t going to get better anytime soon.
Five lenders revealed plans to offer hard-currency debt in quick succession after Turkey tapped Eurobond investors on Oct. 14, ending a drought in issuance that followed a failed coup in July. While borrowing costs are still higher than they were before the crisis, waiting may mean worse terms for lenders, with the Federal Reserve on the cusp of raising interest rates, according to Ram Capital.