Pimco Cuts Turkey Bet as Politics Vie With Sky-High Yields
Foreign investors sold a net $4.85 billion worth of Turkish domestic bonds in the three weeks through April 4, according to central bank data.
Photographer: Kerem Uzel/BloombergPacific Investment Management Co. trimmed its holdings of Turkish bonds last month amid the selloff sparked by the arrest of President Recep Tayyip Erdogan’s top political opponent.
“We are still positive on Turkey but our position is smaller,” said New York-based Pramol Dhawan, head of emerging-markets team at the $1.95 trillion money manager. The political turmoil was “destructive for international investor confidence and it’s destructive for the local institutions in Turkey.”