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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
  • 29 Jun 2015
1 HSBC 24,568.18 148 10.46%
2 Citi 22,974.87 116 9.79%
3 JPMorgan 17,501.47 78 7.45%
4 Deutsche Bank 16,118.47 87 6.87%
5 Morgan Stanley 14,151.38 61 6.03%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 30 Jun 2015
1 Morgan Stanley 6,468.86 16 12.02%
2 HSBC 6,361.31 17 11.82%
3 Citi 6,311.13 25 11.73%
4 Bank of America Merrill Lynch 6,094.38 23 11.33%
5 Deutsche Bank 5,394.16 16 10.03%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 30 Jun 2015
1 Citi 6,277.25 31 6.30%
2 JPMorgan 4,576.40 16 4.60%
3 HSBC 4,238.36 24 4.26%
4 SG Corporate & Investment Banking 3,308.83 14 3.32%
5 BNP Paribas 2,850.41 14 2.86%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 29 Jun 2015
1 Goldman Sachs 274.16 82 10.39%
2 JPMorgan 237.22 73 8.99%
3 Lazard 172.69 77 6.55%
4 Citi 169.41 53 6.42%
5 Deutsche Bank 150.91 51 5.72%

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 30 Jun 2015
1 Mitsubishi UFJ Financial Group 791.69 3 9.92%
2 Bank of America Merrill Lynch 756.72 4 9.49%
3 ING 622.38 6 7.80%
4 SG Corporate & Investment Banking 608.35 6 7.63%
5 UniCredit 591.37 7 7.41%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 01 Jul 2015
1 AXIS Bank 2,908.93 77 13.80%
2 Standard Chartered Bank 2,212.09 32 10.50%
3 Trust Investment Advisors 2,090.40 75 9.92%
4 Barclays 1,746.31 28 8.29%
5 ICICI Bank 1,688.32 43 8.01%