23:25 - 5.06.2026

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June 5, Fineko/abc.az. JPMorgan has downgraded its investment stance on Turkish corporate bonds to "near-neutral," advising investors to reduce exposure to the country’s high-yield private sector debt.

ABC.AZ reports that the decision was highlighted in the bank's mid-year 2026 outlook report for the CEEMEA (Central & Eastern Europe, Middle East & Africa) region.

Strategists, including Zafar Nazim and Lorenzo Parisi, noted that the highly favorable and predictable macroeconomic environment enjoyed over the past two years has shifted significantly due to the war involving Iran, regional political developments, and volatile commodity prices. Consequently, recommendations for high-yield Turkish corporate bonds, as well as bank perpetuals and Tier 2 subordinated debt, have been revised downward.

Alternative Investment Routes: JPMorgan analysts recommend that investors rotate out of Turkish assets and consider alternative opportunities offering better risk-reward profiles:

• Dubai and Saudi Arabia: A positive outlook is maintained on high-yield Dubai real estate bonds. Concurrently, due to shifting geopolitical conditions, Saudi Arabian investment-grade corporate bonds are deemed more attractive than UAE peers.

• CIS and Central Europe: Backed by robust macroeconomic fundamentals, selected corporate and banking bonds from Kazakhstan and Uzbekistan remain appealing, alongside investment-grade Central and Eastern European energy firms.

• Ukraine and Africa: Ukrainian corporate debt is highlighted as a high-yield alternative with relatively low risks. In Africa, petrochemical and oil companies are favored for portfolio inclusion over the next 12 months based on oil price trends, while telecom operators remain attractive due to local currency stability.