Serious question: what is stopping you from investing in Turkish Bonds? (28% yield)

Bump. Know nothing about this but sounds too good to be true at face value…what’s the secret

There is a big FX risk if it’s TRY denominated

Have you not even bothered to google Turkish inflation? Seriously basic stuff and THE key part of understanding why their interest rates are so high...

Turkish interest rates jump to 40% as central bank gets tough on inflation

TradingEconomics

The annual inflation rate in Turkey slowed slightly for the first time in 4 months to 61.4% in October 2023, from 61.5% in the previous month, and below market forecasts of 62.1%, due to the diminishing impact of the lira's significant depreciation over the summer and the tax increases following the election.

Edit: What troll is saying this is inaccurate? OP asked for a reason not to invest in Turkey. Mid double-digit is easily reason #1, they've gone from 5:1 USD to nearly 30:1 in 5 years. You're an idiot if you're net long anything denominated in Lira.

Their bond rating puts them in the junk bond category. This, plus how high the rate is in general means that the market believes that Turkish bonds are fairly high risk. Their inverted yield curve is also not a good sign for their economic prospects over the next few years. It’s a good return, but you’d have to able to stomach the risk.

F around and find out, Turkey edition. 

The issuer

One word: Erdogan.