ISTANBUL, June 7 -- For the better part of two years, JPMorgan Chase & Co. had been among the more constructive voices on Turkish assets. That position, built on the back of Ankara's post-2023 policy turn toward monetary orthodoxy, interest-rate normalization, and a deliberately managed lira, is now being wound down.

In a strategy note released Thursday, the bank said it had closed its overweight exposure to Turkish assets - excluding foreign-currency deposit accounts - and moved to a neutral stance. The proximate cause was not any single macro data point. It was, instead, a political one: the bank's strategists concluded that markets were not fully pricing the possibility of elections before the end of 2026, and that the consequences of...