Eurobond Funds

Eurobond funds invest mainly in public and private external debt instruments. At least 80% of the total value of the fund is invested in the aforementioned debt instruments. They are directly affected by fluctuations in Turkey's "credit default swap", also known as CDS premiums. A decrease in the CDS premium means a decrease in the country risk and causes an upward movement on Eurobond prices. A rise in the CDS premium, on the other hand, implies a rise in sovereign risk and, therefore, a fall in Eurobond prices. Eurobond funds may generally be suitable for investors seeking low risk and stable returns.