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The Turkish lira corporate bond market is in the doldrums and the nation's largest independent fund manager says the government needs to step in to get it going again.The fund would make investors whole again if companies run into repayment troubles and thus help revive appetite for Turkey's nascent market for company debt.The average coupon rate on corporate debt issued since 2015 was 12.1 percent, compared with 11.1 percent on short-term deposits or 10.42 percent for two-year government bonds.However, rising interest rates and a string of defaults this year – culminating with a missed payment this month by eye hospital chain Dunyagoz, a household name in Turkey – has made corporate bonds less appealing.Local funds have seen drops in the value of their corporate bond funds of as much as 60 percent since the beginning of the year, according to data from TEFAS, Turkey's electronic fund platform.Nonfinancial companies sold 50 million liras of bonds in June and 60 million liras in July, near the lowest monthly issuance since Bloomberg started collecting data in 2014 .
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