Türkiye: Stepping Back From The TRY Carry Trade

UBS has shifted its stance on the Turkish lira, moving from a favorable carry trade position to a neutral or off-recommendation stance. The firm now identifies more attractive carry potential in the South African rand, Brazilian real, and Mexican peso.

Key Takeaways

• 1.UBS no longer recommends adding allocations to the Turkish lira (TRY) against the US dollar.
• 2.The firm prefers diversified exposure to higher-yielding emerging market currencies such as the South African rand, Brazilian real, and Mexican peso.

Table of Contents

• Türkiye: Stepping back from the TRY carry trade
• Investing in emerging markets
• Global asset class preferences definitions
• Appendix

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