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was rising,” he also said, adding: “The foreign ownership in free float of equities has been moving in a narrow band of 61% to 66% for at least 8 years... however, there has been an unexplained 1.9ppt drop on 29th of November, which may not be representative.”
“Amid easier financial conditions and ample liquidity, rising geopolitical tensions leave markets unfazed... This trend reflects the ongoing disconnect between political/geopolitical risk and capital markets awash in abundant central bank liquidity. Financial conditions remain very supportive—in the U.S., they are the easiest they’ve been since July, while EU financial conditions have not been this accommodating since 2014,” the Institute of International Finance (IIF) said on January 9 in a note entitled “Liquidity Trumps Geopolitics”.
“With the global bond universe fast approaching $120 trillion, growing reliance on debt capital markets in a low interest rate environment has been one of the most striking features of the post-crisis era. Equally striking has been the increased access to debt capital for emerging markets—EM debt now accounts for 25% of all global debt, up from a precrisis 10%... One result is that the volume of negative-yielding bonds reached a staggering $11.5 trillion as of end-2019— nearly 10% of all global bonds—despite the steadily growing supply of new debt issuance,” the IIF added.
“[L]ong-standing vulnerabilities in [Turkish banking] sector still linger... the [Turkish] banks are by no means in rude health,” Capital Economics said on January 10 in a note entitled “Risks still prominent in Turkey’s banks”.
45 TURKEY Country Report OUTLOOK 2020 www.intellinews.com