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Winners and losers from the Turkish crisis
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Loading...The volatility that comes with a currency crisis creates the opportunity for massive trading gains, but also equally massive losses.
Deutsche Bank traders, responsible for currency and fixed-income trading for the Eastern and Central Europe, Near East and Africa region, reaped $35 million of profits. They made $10 million in profits on 10th of August, when the Turkish currency plunged by, at one point in the day, 20%. Prior to the escalation of the crisis, the traders were already positioned for large falls in financial instruments across the region.
In Barclays, however, one trader trading Turkish government bonds lost $19 million in a three-day period. Barclays notes, however, that the loss is small compared to the revenues reaped by their emerging markets fixed-income operation ($100 million).
Image: pixabay.com
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