Selcuk Gokoluk and Asli Kandemir, Bloomberg News The currency exchange rates are displayed in Istanbul on June 2. Photographer: Nicole Tung/Bloomberg , Bloomberg
(Bloomberg) Investors who looked past headwinds that pummeled the Turkish lira to record lows this year and bought foreign-currency bonds issued by the nationâs companies are now sitting on some of the biggest returns in fixed-income markets.
At just under 4% more than five times the amount netted by traders who parked their cash in a broad emerging-market bond fund the gains have been driven by a global clamor for yield and demand for securities that will benefit as Europeâs economy opens up. Theyâve even outpaced U.S. high-yield debt, an asset class well-paced to weather the prospect of rising inflation thatâs rocked markets.