Rationale for CNH bond boom examined

The stars are aligning in support of explosive near-term growth in dim sum bonds, with Standard Chartered anticipating a five-fold year-on-year increase in the size of the market by the end of 2011. Tailwinds include potential regulatory relaxation as well as the scarcity of comparative yield-bearing alternatives in a volatile trading environment. Cumulative factors are being tipped to drive demand for CNH bonds, deepen liquidity and lead to a lengthening of durations. “I believ…