Asian Debt Markets

Asian Debt Markets

Postby persistentone » Sat Aug 01, 2009 6:53 am

What is the best resource for learning about Asian debt markets? I am looking for vehicles that will let me hold my money as Chinese renminbi and get paid some dividend for it.

I'm sure there must be a lot of debt that pays in Hong Kong Dollars in the Hong Kong market. I'm not sure how closely correlated the HKD will stay to the Renminbi though, particularly as the Renminbi continues to becomes the dominant Chinese currency.
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Re: Asian Debt Markets

Postby winston » Sat Aug 01, 2009 8:20 am

Dear persistentone,

I think you can buy Renmimbi Bonds in HK. I think a few banks were selling them eg. BEA etc.

I did not buy any so would not be able to help you out on this.

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Re: Asian Debt Markets

Postby winston » Wed Oct 21, 2009 8:31 am

I wanted to buy the bonds but than decided against it as it will never make me rich ..

============================================

Bonds show SAR appetite by Alfred Liu

The Ministry of Finance announced yesterday that its six billion yuan (HK$6.81 billion) issue of sovereign bonds was two times oversubscribed, showing a strong response from Hong Kong investors.

Beijing will allocate at least one board lot, or 10,000 yuan worth, of the sovereign bonds to each retail investor, followed by a combination of pro-rata allocation based on the application amount by each investor and balloting.

The ministry, which concluded its debt issue yesterday, said Hong Kong investors send in subcriptions that amounted to 18 billion yuan.

A total of 149,451 applications were received from retail investors.

The Hong Kong sale was the first yuan sovereign bond offer outside the mainland.

They were offered in three tranches with tenors of two, three and five years. The five-year tranche was offered to institutional investors.

They carry annual coupon rates of 2.25 percent, 2.7 percent and 3.3 percent respectively.

The issuer has determined the issue sizes of five billion yuan for the retail tranche and one billion yuan for the institutional tranche. Of the total issues, half of the six billion yuan is for the two- year tranche.

The ministry said the successful issuance of yuan sovereign bonds in Hong Kong demonstrated local investors' confidence the country's economic and social development is sustainable. Bank of China (Hong Kong) (2388) and Bank of Communications (3328) are joint lead managers and bookrunners for the issue.

Following criticism the buying procedure for yuan bonds issued by lenders such as Bank of East Asia (0023) and China Development Bank were long and complicated, local regulators simplified arrangements for sale of sovereign bonds by allowing banks to waive the use of tape recordings and use normal counters to sell the notes.

Clients may also buy the products online or through phone banking networks, provided there is no risk of mismatches.

http://www.thestandard.com.hk/news_deta ... 91021&fc=4
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Re: Asian Debt Markets

Postby kennynah » Wed Oct 21, 2009 8:48 am

perhaps the intention is to buy into RMB

only our smart alec is issuing usd denominated bonds....
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Re: Asian Debt Markets

Postby AirFlownAussiePork » Sun Oct 25, 2009 5:50 pm

The RMB is non convertible and will remain so for the foreseeable future. It is an distant alternative to USD as the reserve currency but by a very long shot. It is wise to issue USD denominated bonds but stupid to buy them. When it is payment time, you will find that the the bonds you have purchase will be worth far less than what you have bought them for, thanks to the weakening USD.
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Re: Asian Debt Markets

Postby kennynah » Sun Oct 25, 2009 6:08 pm

it is common currency that RMB is not generally convertible and useable largely within china and her enclaves... you have to understand where Winston is residing when i responded to his post.. otherwise, it will not make sense.

of cos issuing Bonds in USD is a good move...who wouldn't... but it will take some idiotic and dangerous risk taking for the BUYERS....and here, you are assuming that most people who buys bonds are not too bright... so, if in good faith we assume major institutions and wealthy investors are of some brain.... they should not be interested in USD denominated bonds...and if so, you still think temasek is smart to try raise money issuing USD denominated bonds?

fyi....through time, you will find that there are many many savvy investors in this forum, folks with eons of investing experiences, very unlike many other forums that you may have encountered elsewhere... it is also here that i have been educated by these good people of Investideas...
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Re: Asian Debt Markets

Postby AirFlownAussiePork » Sun Oct 25, 2009 6:33 pm

I have absolutely no doubts about the intelligence of the forumers here. If I had inferred so in my posts. My deepest apologies.

Bond prices have factored in the risks and dangers of devaluation. My comments may be harsh but I feel that more devaluation has to take place as it is imperative for the USA to start decreasing its deficit. It is a matter of opinion and I am not condemning anyone to be less bright. They may well be right and I am wrong, markets are a random walk prediction, you never know.

Yuan wise, it will take decades to dislodge USD as the reserve currency of the world. I have no doubt that the paramount leaders in China had already planned the coming. China had been buying up Gold secretly through several fronts and had just announced it recently as a warning to US not to debase its currency too rapidly. They now has the fifth largest official gold reserve in the world surpassing even Switzerland. Why is it so? I would suspect that as Yuan evolve towards a convertible currency, a Gold Backed Yuan will be far more attractive than an unstable USD that under pressure of huge deficits.

The pressure exerted by China, and to a lesser extent India in pressuring IMF to sell its 3217 tons of gold to help poor countries is just another step forward for a Gold Backed Yuan with China and India lapping up what will be released by the IMF.
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Re: Asian Debt Markets

Postby millionairemind » Fri Aug 27, 2010 7:35 pm

August 27, 2010, 3.11 pm (Singapore time)

Update: S'pore benchmark cut-off yield at expected 2.91%


SINGAPORE - An auction of benchmark 20-year Singapore government bonds was oversubscribed and fetched a cut-off yield of 2.91 per cent on Friday, well within market expectations.

The Monetary Authority of Singapore (MAS) said $4.118 billion (US$3.05 billion) worth of bids were received in the auction for $2 billion of bonds.

MAS itself took $200 million of the paper.

'It suggests buyers are comfortable with 20-year duration at sub-3 per cent handle, probably reflective of the benign inflation and slow growth environment and also preference for SGD-denominated assets,' said Selena Ling, head of treasury research at OCBC Bank.

'I think this is fairly in line with my expectations,' she added. 'We were expecting around 2.9-3 per cent.'

Singapore consumer prices rose a greater than expected 3.1 per cent in July from a year ago, but economists said the increase was largely driven by soaring car prices. If car prices were taken away, inflation remains benign, they said.

'It was a very strong auction and shows investors' demand for long end bonds and their preference for long duration at this juncture,' said Pin Ru Tan, strategist with Royal bank of Scotland.

Other analysts agreed.

'The bid to cover ratio at 2.06 is strong compared with the historical average of 1.8-2.0 times,' said Thio Chin Loo, senior forex strategist at BNP Paribas in Singapore.

'I expect it to trade at around 2.91-2.88 per cent at the open.' -- REUTERS
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Re: Asian Debt Markets

Postby winston » Mon Nov 29, 2010 1:35 pm

Not vested

Emerging East Asia bonds hit $5.1 trillion in 3Q

Foreign money poured into emerging East Asia's bond markets in the third quarter, boosting local currency bonds on issue to $5.1 trillion despite government efforts to slow a tide of cash they worry is pushing their currencies too high.

The Asian Development Bank report released Monday said the value of local currency bonds outstanding was up from $4.8 trillion at the end of the April-June quarter and 17.2 percent higher than a year earlier.

The increase was driven by corporate bonds while growth in sales of government bonds slowed as economic stimulus spending was wound down, the ADB said.

"Companies are taking the opportunity to raise money in Asia's local currency bond markets because of the growing demand from investors," said Iwan Azis, who heads ADB's Office of Regional Economic Integration.

Azis said foreign investors were attracted to Asian bonds because of the region's strong economic growth and its higher interest rates compared with developed economies where rates remain at record lows in the aftermath of the global recession.

Emerging East Asia comprises China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Thailand and Vietnam

Azis said bond investors had not been deterred by measures taken by some governments to slow the amount of foreign capital entering their markets. Export-reliant countries worry the inflows will contribute to pushing their currencies higher, making their products more expensive overseas, or that rapid reversal could endanger their financial systems.

South Korea in early November indicated it would impose a tax on foreign investment in government bonds. Indonesia in July announced a minimum holding period for foreign investment in short-term government debt to deter speculators and Thailand in October slapped a tax on foreign investment in bonds.

There were $1.556 trillion of emerging East Asia corporate bonds outstanding at the end of September. In local currency terms, this was up 5.7 percent from the previous quarter and 23.8 percent higher than the year before.

The corporate bond market now comprises 30 percent of emerging East Asia's total local currency bonds outstanding.

"What we are seeing is a fundamental change in the investor makeup in emerging East Asia's bond markets, Azis said. "Having now become familiar with these markets, foreign investors are likely to see them as a core part of their portfolios."

Local currency government bonds reached $3.550 trillion, 14.6 percent higher year-on-year and 1.9 percent higher quarter-on-quarter. The slower growth came as many countries pared their fiscal stimulus programs with some central banks apparently opting to slow bond sales, the ADB report said.

China and Indonesia had the fastest-growing corporate bond markets at the end of September, both of which grew 10.9 percent on a quarter-on-quarter basis, followed by Singapore, which grew 7.1 percent quarter-on-quarter.

Growth of the Chinese market reflected the strength of the medium-term note and commercial paper markets coupled with a recovery in issuance by state-owned enterprises. The growth in the Indonesian and Singaporean corporate markets reflected a strengthening of interest by foreign investment funds.

___

Online:

http://www.adb.org/Media/Articles/2010/ ... d-markets/

Source: AP News
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Re: Asian Debt Markets

Postby behappyalways » Tue Sep 01, 2015 12:59 pm

Southeast Asia's Biggest Companies Risk $392 Billion Debt Burden
http://www.bloomberg.com/news/articles/ ... -98-crisis
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