Voracious investors grow picky amid CNH supply glut

DEBT CAPITAL MARKETS bankers in Hong Kong are now talking about the development of China’s offshore bonds (CNH), as being akin to the growth of the Eurobond market in the 1970s and 1980s. “This is the most exciting development in international capital markets in many years,” says Rod Sykes, head of debt capital markets origination Asia-Pacific at HSBC. “It is the kind of transformational development that comes along once in a professional career, and what’s interesting is that while when the Eurobond markets started the early issuers were all highly rated, the CNH market already has a spectrum of products from highly rated frequent borrowers to high-yield issuers and even unrated corporates.