Turkey’s BIST 100 fell more than 5% yesterday after Pusula Portföy said some funds could not meet redemptions. The FT reports roughly $1 billion of withdrawals across investment funds, citing fund-flow data. Its account describes concentrated holdings in related companies with limited free floats: purchases that could lift share prices and reported fund values, attracting more money into the same positions. Financial Times, September 16
The reversal brings two forms of liquidity into conflict. Investors can request cash against the latest NAV; the manager must find buyers for the holdings that produced it. When those holdings are concentrated and thinly traded, the sale needed to honor a redemption can undermine the price used to calculate the next one.
So far, the damage appears more concentrated in equities than in Turkey’s currency or sovereign credit. Cinco Días reports a relatively stable lira and more modest effects in bonds and credit insurance. That distinction argues against casually describing every local-market selloff as a countrywide funding crisis. It leaves a sufficiently serious problem inside the fund industry. Cinco Días
The Fed, briefly: yesterday’s quarter-point increase takes the target range to 3.75–4%, with all twelve voting members supporting it. The statement pairs elevated inflation with solid growth, strong productivity and capital investment. It also retains the ample-reserves operating framework. The unanimous vote is a cleaner fact than any attempt to extract the entire next rate cycle from the wording. Federal Reserve, September 16