Economics
Turkish Stock Traders Hedge for Losses After S-400 Delivery Starts
- Cost of hedging on New York-traded ETF rises to 5-month high
- Outflows from the largest Turkish stock ETF continued in July
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As short-term risks are building for Turkish equities with the delivery of a Russian missile defense system that has drawn the threat of U.S. sanctions, option traders are bracing for losses.
During the run-up to Friday’s delivery of the first batch of the S-400 missile system parts, options data showed the cost of hedging against declines in the largest exchange-traded fund tracking Turkish stocks has climbed to the highest level since late January. Outflows from the the iShares MSCI Turkey ETF reached $163.2 million this year, with the bearish bets climbing to a record high.