Asia Pacific

Collateralised loan obligation (CLO) securitisations will become a key way to fund SMEs in China and are an important part of economic reform, but investors must be cautious about product structure.

Taiwan has been cited as one of the most restrictive offshore renminbi hubs for global investors and bond issuers to do business in. Yet new settlement and taxation developments put Taiwan on a more even footing – albeit only slightly.

The burgeoning offshore renminbi bond market claimed three firsts this week, amid suggestions that some of the moves trialled by issuers could become commonplace.

Ping An Insurance priced its second dim sum bond in three years as investors desperately hunt for offshore renminbi supply.

Top 3 Offshore RMB DCM Transactions - 2013 YTD

Now is a good time for investment grade companies to sell CNH bonds ahead of a surfeit of sales from Chinese state-owned issuers, which could draw liquidity out of the market.

Ananda Development Public Company will be selling the dim sum market’s first perpetual bond to take advantage of reverse enquiry for its names.

Covered bonds from Australia and New Zealand have varying levels of exposure to the property cycle, according to latest Moody’s research. Even if prices were to fall, there are safeguards to moderate the impact, it said.

Chinese regulators hope the newly launched loan prime rate will become the credible pricing benchmark that the country lacks ahead of broader interest rate liberalisation.

Ping An Insurance priced its second dim sum bond in three years as investors desperately hunt for offshore renminbi supply.