Algebris Investments is buying default protection on Turkish bonds, as it sees a higher probability of a credit event with the Iran war increasing strains on the economy. Turkey‘s economic situation is increasingly fragile, driven by a worsening current account deficit, rising energy prices, and low foreign reserves that raise the risk of dollarization, said Gabriele Foà , who manages €3.7 billion...
Algebris Investments is buying default protection on Turkish bonds, as it sees a higher probability of a credit event with the Iran war increasing strains on the economy. Turkey‘s economic situation is increasingly fragile, driven by a worsening current account deficit, rising energy prices, and low foreign reserves that raise the risk of dollarization, said Gabriele Foà , who manages €3.7 billion ($4.3 billion) for Algebris from Milan. “In credit and in fixed income in general, the value is extremely limited; you are not adequately compensated for what could happen in the next couple of years,” he said. “We believe it is time to sell Turkey rather than buy.” The former Bank of America emerging markets strategist is co-manager of the Algebris Global Credit Opportunities Fund , whose returns have outpaced 98% of its peers over the past five years. Plenty of other investors are turning bearish on Turkish debt too: There’s been an almost 40% decrease in the value of foreign holdings of the local-currency securities since before the start of the Iran war in late February, according to central bank data . Turkish lira bonds have handed investors a 3.2% loss this year against a 1.1% gain for emerging markets as a whole, while sovereign debt in dollars had a 0.3% loss against an average gain of 1.5% for developing country debt, according to data compiled by Bloomberg. Turkey’s gross foreign-exchange reserves have fallen by one third this year to $53 billion on May 29, their lowest since June 2021, according to central bank data . ‘Extremely Asymmetric’ While there is little indication of stress in the credit market so far, current yields don’t adequately compensate investors for the potential risks, said Foà. Credit default swaps are an “extremely asymmetric” trade, Foà said. Turkish CDS are trading at 250 basis points now and can jump to 350, 450 or even 550 as default risk rises, he said. With reserves where they are now, CDS can’t drop to 150, he said. “Seeing a default...
Luca Sage/DigitalVision via Getty Images Peloton Interactive ( PTON ) has acquired Skōp, a Pilates-focused startup, as the fitness company looks to broaden its wellness offerings and attract new users as part of its ongoing turnaround strategy. This strategic acquisition will serve as a “central plank” in the expansion of Peloton's strength-training ecosystem, where the company continues to invest...
Luca Sage/DigitalVision via Getty Images Peloton Interactive ( PTON ) has acquired Skōp, a Pilates-focused startup, as the fitness company looks to broaden its wellness offerings and attract new users as part of its ongoing turnaround strategy. This strategic acquisition will serve as a “central plank” in the expansion of Peloton's strength-training ecosystem, where the company continues to invest in both R&D and instructor talent. "Pilates is a category ripe for the same kind of experiential reinvention we brought to cardio," CEO Peter Stern said , adding that “Skōp adds differentiated technology and specialized knowledge to our R&D team so we can continue to empower people to live fit, strong, long and happy.” The acquisition comes as demand for Pilates continues to grow. Peloton said engagement with its existing Pilates content rose 48% year over year in the third quarter, while industry data identified Pilates as the fastest-growing fitness category in the U.S. Peloton has been exploring new product categories to drive membership growth and deepen engagement. The company has also signaled plans to place greater emphasis on its treadmill business, including the potential introduction of lower-priced models. The addition of Skōp could help Peloton enhance its Pilates offering with new features, including technology designed to track users' form and movement during workouts. More on Peloton Peloton Interactive, Inc. (PTON) Presents at 2026 Baird Global Consumer, Technology & Services Conference Transcript Peloton: Compelling Return To Growth Peloton Interactive, Inc. 2026 Q3 - Results - Earnings Call Presentation These low-priced stocks are flashing overbought signals S&P SmallCap 600 to add Peloton, Universal Technical
Morning, I’m Chloé Meley from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. William Hill-owner Evoke is cashing in its chips. The struggling gambling firm has agreed to a takeover by Bally’s Intralot , a Greek-listed joint venture majority owned by US casino operator Bally’s . The deal values Evoke at £243 million, prompting its shares to jump 13%. Bu...
Morning, I’m Chloé Meley from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. William Hill-owner Evoke is cashing in its chips. The struggling gambling firm has agreed to a takeover by Bally’s Intralot , a Greek-listed joint venture majority owned by US casino operator Bally’s . The deal values Evoke at £243 million, prompting its shares to jump 13%. Burdened by debt since its William Hill acquisition and now facing higher gambling taxes in the UK, Evoke has been struggling for some time and began exploring a sale late last year. Chancellor Rachel Reeves announced tax rises on various types of gambling in November’s budget – including remote gaming and betting, but excluding bingo and horseracing – in a bid to raise £1.1 billion. Evoke previously said the changes would increase duty costs by as much as £135 million once fully implemented in April 2027. Meanwhile, Bally’s Intralot has been going all-in on acquisitions, buying UK online gaming platform Gamesys in 2021 and taking control of Australian casino operator Star Entertainment Group last year. What’s your take? Ping me on X , LinkedIn or drop me an email at cmeley@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond. What We’re Watching Andy Burnham has confirmed for the first time that he wants Keir Starmer ’s job, taking the opportunity to pitch himself as the next PM in an episode of BBC’s Question Time. Starmer said he would not walk away from his mandate. In more (non) M&A news, Apollo said it does not intend to make a firm offer for industrial heat treatment firm Bodycote , after proposing a bid worth about £1.5 billion last month. Bodycote shares plunged 11%. Meanwhile, gene therapy company Oxford BioMedica remains open to a private equity takeover, the CEO told the Financial Times. The company had previously been in talks with Swedish PE firm EQT , though the bid was dropped in Februar...
Emerging market assets fell for the third straight session, led by a selloff in South Korean equities as investor enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Market index shed 1.7% to 1,728.66, with Seoul’s main index slumping as much as 7% on Friday. Chipmakers including Samsung Electronics Co. and SK Hynix Inc , which together account for more than half of the Kospi’s ...
Emerging market assets fell for the third straight session, led by a selloff in South Korean equities as investor enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Market index shed 1.7% to 1,728.66, with Seoul’s main index slumping as much as 7% on Friday. Chipmakers including Samsung Electronics Co. and SK Hynix Inc , which together account for more than half of the Kospi’s market capitalization, led the decline after Broadcom Inc. ’s outlook for AI-chip sales fell short of elevated expectations. Emerging market stocks and currencies are set for their first weekly fall after two weeks of gains. Investors also cautious ahead of Friday’s US nonfarm payrolls report for clues on the Federal Reserve’s interest-rate path. “Broadcom was the trigger that reminded markets how stretched expectations have become,” said Charu Chanana , chief investment strategist at Saxo Markets. “Investors have priced in a lot of perfection around AI, so even a small disappointment can lead to a pretty sharp reset,” she added. A stronger-than-expected payrolls print could be another excuse to trim crowded AI bets, she added. Risk assets were pressured by renewed geopolitical tensions after peace talks between the US and Iran stalled . Tehran-backed Hezbollah militia rejected a US-brokered ceasefire proposal on Thursday, raising concerns about further instability in the Middle East. A gauge of developing-market currencies fell 0.3%, extending its losing streak to a fourth day. The South Korean won was the worst-performing currency in Asia, dropping 0.8% as foreign investors continued to sell local equities. Read: Korean Markets Buckle as Foreigners Sell $10 Billion in a Week India’s rupee outperformed its emerging-market peers after authorities unveiled a series of measures to support the currency, including tax exemptions for foreign investments in government securities. Read: India Measures to Boost Rupee, Spur Foreign Flows, Analysts Say