Unlike its counterparts in the world, the fact that almost all of the companies in the sovereign wealth fund, which was established as a shareholder of institutions with public shares rather than aiming to manage funds, are traded on BIST is important for the formation of these companies’ market value. Since the sovereign wealth fund is designed as an unsupervised, unaccountable legal entity as an alternative new borrowing pocket for the Treasury, the market value of the companies it owns is of great importance.
The sovereign wealth fund tries to keep the market value and therefore the collateral value of foreign sources created abroad that can provide borrowing support high by supporting BIST derivative instruments on BIST and VIOB with its liquid funds. It is needless to say that this is a very dangerous and, as usual, an application contrary to market conditions. In addition, since this purchase support cannot continue indefinitely and lending institutions will be aware of this, they will already demand a much larger percentage of shares as collateral value or keep the LTV (loan-to-value) ratio low. As in every aspect of the market, opaque practices always face a higher risk premium and a high amount of debt as collateral against the Sovereign Wealth Fund. Above all, small investors who are lured into this virtual world with the exit of the stock market should be willing to accept much greater losses in the future. Neither inflation, nor exchange rates, nor unemployment, nor the current level of stock market indexes are realistic.
