Hakan Kara: Critical Warning About Turkey's Risk Premium

Turkey's Risk Premium: Important Statements from Hakan Kara

Hakan Kara, one of the leading figures in the finance world, made a striking assessment regarding Turkey's risk premium. Kara emphasized that investors should be cautious given the current level of risk premium. He drew attention to Turkey's credit default swaps (CDS) and made noteworthy comparisons.

Comparison with Brazil and South Africa

Kara pointed to Brazil and South Africa as reference points for determining Turkey's CDS levels. He stated that before 2018, Turkey's CDS rates were at similar levels to those of these countries. However, he expressed that our current CDS is approximately 80 basis points higher than these countries.

Comparison with the Pre-2018 Period

Although the CDS level of Turkey has returned to pre-2018 data, Kara highlighted that the risk premium remains relatively high. This situation is considered an important risk indicator for investors. Investors should understand that it is critical to conduct comparative analysis rather than focusing solely on nominal CDS figures.

Market Expectations

As a result, Hakan Kara's emphasized points indicate that caution is necessary in making investment decisions. The high risk premium may increase concerns about uncertainty and volatility in the markets, requiring investors to adopt a more cautious approach.