CNH Hibor is expected to spur derivatives growth

04/30/2013 | Risk.net (subscription required)

The Hong Kong Monetary Authority has announced that the CNH Hong Kong Interbank Offered Rate will launch in June. Market participants expect CNH Hibor to drive growth in derivatives, including interest-rate swaps. "After this announcement and subsequent publishing of the fixing rate in June, we expect banks will start to provide interest-rate hedging solutions such as simple interest-rate swaps, overnight index swaps and forward-rate agreements to help clients manage their interest-rate risk," said Beng-Hong Lee of Deutsche Bank.

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