CNH bond inflows tipped to continue
Despite the broad exodus from emerging market debt, offshore renminbi bonds have attracted flows and are expected to continue to benefit from renewed investor interest.
Amid the emerging markets sell-off this summer, there has been a bright spot in the Asian local-currency debt markets – offshore renminbi, or CNH, bonds – and bankers argue that flows will continue into those instruments for the remainder of the year.
Venkat Rao, an associate in Asia debt syndicate at Bank of America-Merrill Lynch, says money will continue to re-allocated to CNH bonds in light of their recent improved performance.
CNH or ‘dim sum’ bonds – which are issued in Hon…
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