Maturity Dates of Brokerage House Bonds and Potential Market Impacts
In the shadow of the mutual fund crisis, the maturity of bonds issued by brokerage houses to finance leveraged transactions raises concerns of a new wave of selling pressure in the market.
Following the mutual fund crisis, the approaching maturity dates of bonds issued by brokerage houses to finance leveraged transactions are causing market anxiety. The decrease in demand for money market funds and the issuance volume reaching 3.2 billion liras force brokerage houses to sell stocks, creating a risk of new pressure on the stock exchange.
Mutual Fund Crisis and Bond Maturity Pressure
As the effects of the mutual fund crisis continue to widen, the maturity dates are approaching for brokerage houses that issued bonds to finance leveraged transactions.
A noticeable decrease in demand is observed in money market funds, which are the largest customers of these issuances totaling 3.2 billion liras set to mature across various terms.
Potential Selling Pressure on the Stock Market
Experts note that the maturity pressure could force brokerage houses into stock sales and pose the risk of a new wave of selling on the stock exchange.
Outflows from money market funds and investor inquiries into portfolio contents increase the probability of encountering difficulties during bond maturities.
Capital Markets Board Actions
As Borsa İstanbul struggles with a liquidity crisis, regulatory steps continue.
The Capital Markets Board has lifted the limits on share buybacks until a secondary announcement, while share buyback notifications from companies have gained momentum.
Leveraged Transaction Volume and Investor Data
According to data from the Capital Markets Association of Turkey, the volume of leveraged transactions stood at 129.2 billion liras as of the end of August.
While the number of accounts utilizing credit exceeded 46,081, the credit volume per investor reached a peak level at 2.8 million liras.
Margin Calls
The high credit volume per investor has led to an increase in margin calls.
According to Takasbank data, after reaching 1.13 billion liras on the first trading day of the week, margin calls recorded a decline.