As the markets opened in London on Monday it seemed as though all hell was about to break loose across the emerging markets. The Turkish lira had slumped by around 20% in a little over 24 hours of trading as the country's economic predicament looked to be spiralling out of control. It was looking equally bleak in the credit market. Within minutes of terminals being switched on, Turkey's credit spreads in both the cash and derivatives markets were gapping wider. The sovereign's five-year CDS blew out by 100bp.
展开▼
