Türkiye's CDS tops 250 for the first time since 27 May: as the $18 billion liquidation of 131 funds proceeds, Erdoğan says no systemic risk; 45 arrested

According to Bloomberg HT's 25 September market summary, Türkiye's 5-year credit risk premium exceeded 250 for the first time since 27 May; on the same day the dollar/lira rose 0.15% to 48.97, the euro/lira stood at 55.84, and the BIST 100 closed 0.08% higher at 12,898 points. In Investing.com data the CDS was 223.02 basis points on 11 September, 232.80 on 18 September and 245.17 on 24 September; the 25 September closing value was not yet available from this source, so the exact close could not be verified. On the same day the US 30-year yield, at 5.51%, was at its highest since 2004, and the German 30-year yield, at 3.92%, at its highest since 2011.

According to 24 and 25 September Turkish Minute reports, the CMB placed 131 funds belonging to 7 portfolio management companies into liquidation; the funds' pre-liquidation assets were around $18.3 billion, the number of affected investors 455,758, and the liquidation period was extended from 3 to 6 months. The number of those arrested rose to 45 as of 25 September; by 21 September MASAK had stopped attempted transactions worth around $51 million. According to a 24 September Karar report, Erdoğan said on his return from the UN that the problem lay in a limited area of the capital market; according to Sözcü, he said those responsible would be held to account before the law. Main opposition leader Özgür Özel, meanwhile, called it the fraud of the century.