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Emerging Markets

Offshore renminbi IRS curve comes into view

The three Hong Kong note issuing banks have begun providing offshore renminbi (CNH) HIBOR fixing rates, taking the market one step closer to a functioning CNH interest rate swap curve.

  • 05 Jan 2012
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On the third January, HSBC, Standard Chartered, and Bank of China (Hong Kong) began providing CNH HIBOR fixing rates via the TMA (Treasury Markets Association – an association in Hong Kong) platform. The note issuing banks have agreed to report their rates in the tenors ranging from overnight to one year.

Without a true CNH HIBOR fixing rate it is nigh on impossible to produce a reliable CNH interest rate swap curve, useful for effective hedging against dim sum bond exposure. At present offshore deliverable IRS is referenced against an onshore renminbi rate, not a perfect rate match.

Cross currency swaps have been used as another form of hedging, although this can be very expensive.

Frances Cheung,  Asian ex-Japan strategist for Credit Agricole CIB, wrote in a research note on January 4, “Prior to this exercise, a number of banks have already been providing their own CNH HIBOR through various channels. The collection of quotes via the TMA platform is seen as a small step towards a CNH HIBOR fixing, and thereafter the development of a true CNH IRS market in the future."

A key requirement to having an effective CNH HIBOR is secondary market liquidity in deposits. CNH levels have been thin in absolute terms and most of the activity focuses in on overnight to 1 week tenors, wrote Cheung.

  • 05 Jan 2012

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Apr 2015
1 HSBC 15,618.43 88 11.68%
2 Citi 12,551.87 62 9.39%
3 Deutsche Bank 11,171.59 57 8.35%
4 Morgan Stanley 9,412.71 35 7.04%
5 JPMorgan 8,690.59 42 6.50%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Apr 2015
1 Morgan Stanley 5,282.86 11 15.60%
2 HSBC 4,667.97 12 13.79%
3 Deutsche Bank 3,569.22 9 10.54%
4 Bank of America Merrill Lynch 3,286.42 8 9.71%
5 Citi 3,273.75 11 9.67%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Apr 2015
1 Citi 4,282.26 22 6.14%
2 SG Corporate & Investment Banking 2,969.53 10 4.26%
3 HSBC 2,894.36 14 4.15%
4 JPMorgan 2,429.19 10 3.48%
5 Barclays 2,414.37 8 3.46%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Apr 2015
1 Goldman Sachs 182.98 55 11.31%
2 Lazard 121.92 49 7.54%
3 JPMorgan 110.15 35 6.81%
4 Bank of America Merrill Lynch 110.04 39 6.80%
5 Citi 105.89 38 6.55%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Apr 2015
1 BNP Paribas 330.67 2 9.81%
2 Deutsche Bank 242.09 2 7.18%
3 SG Corporate & Investment Banking 236.04 3 7.00%
4 Natixis 198.92 2 5.90%
4 ING 198.92 2 5.90%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 15 Apr 2015
1 AXIS Bank 1,988.55 43 5.30%
2 Trust Investment Advisors 1,393.56 39 3.72%
3 ICICI Bank 1,173.87 27 3.13%
4 Barclays 1,059.44 17 2.82%
5 Standard Chartered Bank 715.99 13 1.91%