S&P Dow Jones Indices and Deutsche Bank have co-branded the Offshore renminbi bond index ‘S&P-DB ORBIT Index' which offers a benchmark of the fast growing offshore renminbi (RMB) denominated fixed income market.
S&P Dow Jones Indices and Deutsche Bank have co-branded the Offshore renminbi bond index ‘S&P-DB ORBIT Index’ which offers a benchmark of the fast growing offshore renminbi (RMB) denominated fixed income market.
The co-branded rules-based index is based on Deutsche Bank’s existing Offshore Renminbi Bond Index Tracker, the first tradable market benchmark index to provide exposure to the CNH (offshore RMB) bond market. the company said.
It has been designed to be a highly transparent, liquid and replicable benchmark for CNH bonds, with active two-way prices, tracking CNH bonds and certificates of deposit with a minimum issuance size of CNH1bn and at least 12 months to maturity.
It is calculated in RMB and rebalanced on a monthly basis. The index is publicly quoted on Bloomberg and is available to investors in RMB, US dollars and Hong Kong dollars.
“The offshore RMB bond market continues to grow as the bonds are popular vehicles among offshore investors looking to gain exposure to both the yuan and debt markets in China,” said JR Rieger, vice president of fixed income indices at S&P Dow Jones Indices.
Vishal Goenka, head of Asia local currency credit trading for Deutsche Bank added: “The offshore RMB bond market has developed considerably over the past year, with a growing range of maturities and continued diversification in issuer names. As the market continues to deepen and attracts more sophisticated investors, transparent and independent benchmarking becomes increasingly important. The S&P-DB ORBIT Index joint venture will continue to offer investors an invaluable measure for offshore RMB bond market performance.”