Rising interest rates and the eruption of war in Lebanon and Israel has persuaded many players in Turkish structured finance that it would be better to hold off on making deals until September, sources said. HSBC Turkey, however, might prove an exception, while Yapi ve Kredi Bankasi is heard to be querying players on a potential deal.
HSBC Turkey is heard readying a debut deal backed by diversified payment rights (DPRs). Lead by HSBC itself, the deal will likely end up with a wrap from FGIC, which, so far this year, has insured a $150 million, seven-year tranche in a DPR transaction originated by Turkiye Vakiflar Bankasi, according to a source familiar with the sector. More details on HSBC Turkey's transaction were unavailable at press time.