Markets are reaching for the Turkish risk premium

Quick Summary:

This raises a deeper question: how do markets price risk over the long term when political volatility looms large?

For the sake of Turkey’s future economic prosperity, let us hope it avoids becoming another case study in this long and tragic tradition.

The message is clear: investors are pricing in greater depreciation risk, which will feed back to inflation, and a more persistent rise in default risk, which inflates borrowing costs and suppresses investment.

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Article Details

Author / Journalist: Şebnem Kalemli-Özcan

Category: MarketsFinanceInvesting

Markets: United StatesSierra LeoneTurkeyZimbabwe

Topics: Lira “whatever Political Future Risk Financial Economic Markets Takes” Turkey’s Institutions

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-02 @ 04:00:30 (2 days ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 729 words

Reading Time: 5 minutes read

Sentences: 39 lines

Sentence Length: 19 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 27530121

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About Financial Times

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 16 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 9 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

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Publisher ID: #3

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