The offshore renminbi bond market has seen a surge of issuance in the past year, with bankers predicting that 2012 will be even busier. This does not mean an easy ride for borrowers, however, with investors expecting higher yields as they no longer buy into the market solely on the basis of the strengthening currency.
Latest articles from Paul Wallace
Vickers report leaves investment banking shrouded in uncertainty
December 1, 2011The proposals by the UK's Independent Commission on Banking are likely to change investment banks’ business models in the country fundamentally. The biggest effect could be to increase their funding costs, which might force more UK companies to turn to bonds instead of loans. But plenty of questions remain unanswered.
Nigeria’s banks enter new dawn
November 1, 2011Nigeria has revitalised its banks following their crisis two years ago. They are now far healthier and are once again making strong profits. But the shake up of the industry will continue for a while yet, as the affects of recent consolidation – including the creation of two new top tier banks – begin to be felt.
High-yield bonds battered but still resilient
November 1, 2011Junk bonds have suffered badly since the start of June, with investors being quick to sell off what is one of the riskiest fixed-income asset classes. But bankers point to the market’s underlying strengths and insist it will only get bigger in the long term.
African currencies gain favour
October 3, 2011Most African currencies are in demand thanks to high rates of economic growth across the continent. Analysts foresee this trend continuing over the next decade, with foreign inflows pushing up foreign exchange trading volumes in many African countries.
Nigeria's Okonjo-Iweala vows to reform country's economy
October 3, 2011Ngozi Okonjo-Iweala’s recent appointment as Nigeria’s economic tsar has led to high expectations that the country can finally start to fulfil its vast potential. But, despite her intellect, boundless energy and standing among investors, the task is a daunting one.
New leadership prompts high hopes for change in Nigeria
October 3, 2011Mismanagement and corruption have stifled Nigeria's economy for decades. But this year’s elections have given hope that its leaders will finally embark on the deep reforms needed to modernise the resource-rich country and enable it to finally fulfil its vast potential.
Amcon bears the burden of Nigeria's troubled banks
October 3, 2011By taking on their non-performing loans, Nigeria’s state-owned bank, Amcon, has played a pivotal role in ensuring that the country’s banks are up and running again just two years after their crisis. However, its chief executive is keen to stress that its work is far from over.
Zimbabwe's finance minister knuckles down to an unenviable task
September 1, 2011Finance minister Tendai Biti has helped turn around Zimbabwe’s economy since taking office in 2009. But he faces a tough task trying to lure foreign investors to a country whose politics are still so messy.
Can the IPO market be reignited?
September 1, 2011Turmoil in global equity markets has severely dented hopes that initial public offering activity would recover by the end of the year. But bankers insist that the IPO market is still open and that just one successful, high-profile deal will lead the way for others.