Renminbi markdown kills offshore MTN surge

By Jonathan Breen
13 Aug 2015

China’s devaluation of its currency has halted private medium term note business in offshore renminbi after it led to a plunge in the renminbi/dollar swap rate. But when the basis swap stabilises issuance will return just as soon as investors readjust their yield targets, say MTN bankers.

The drop in the cross currency basis swap comes amid the strongest ever quarter for MTN volumes in offshore renminbi, led by financial institutions, which were behind the majority of issuance.

“The devaluation has put a lot of business on hold, but there is no doubt it will ...

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