By Tom Lydon:
Turkey's credit rating was recently upgraded to investment grade status on stronger economic strength and less short-term risks, boosting the country's markets and the exchange traded fund. The iShares MSCI Turkey Investable Market Index Fund ETF (TUR) is the best-performing unleveraged ETF the past month.
ISTANBUL (Reuters) - Turkey's central bank acted to support the lira on Tuesday and Turkish debt insurance costs rose, as markets - looking past data on faster economic growth - took fright at fresh police and protester clashes in Istanbul.
The winner of the U.S. war in Iraq looks like it will be Turkey. Ironic, because Turkey opposed the war. Nonetheless, a story in the Financial Times resonated with me — as I just returned from the country:
“A new candidate has emerged as the true victor of the Iraq war. A decade after Turkey infuriated Washington by blocking the deployment of U.S. troops through its territory for the 2003 invasion, its businessmen are proving the champions in the battle for the Iraqi market.”
Marc Chandler submits:S&P upgraded Turkey's long-term foreign currency rating to BB from BB- and said the country has a positive outlook which suggests the likelihood of additional rating increase, which could come in the next year or two.Our proprietary model is consistent with a BB+ rating. The reduced debt burden and the stability of Turkish banks were behind the S&P decision.While Turkey's debt market did not seem to respond to the news, the lira did.
So, the next domino falls in the Pan-European Sovereign Debt Crisis. As has been the casse for much of the Asset Securitization Crisis and the Pan-European Sovereign Debt Crisis, the ratings agencies have arrived to smoldering pile of ashes littered with charred bones and remnants of the putrid smell of burnt flesh with a fire hose and a megaphone yelling "Get out!