Debt issuance set to shrink even as maturities climb to record
Fubon Asset cuts offshore yuan bond holdings, looks to dollar
Dim Sum bond fund managers, armed with $2.6 billion and little to spend it on, are struggling with a market creaking under the challenges of record maturities and slumping sales.
Ben Hsueh, who oversees an offshore yuan fund at Fubon Asset Management in Taipei, says he has few investment choices at the moment. His high-yield bond fund has reduced holdings of Dim Sum notes to less than 10 percent from 50 percent in 2013, with the remainder made up of a small portion of onshore debt and 90 percent of dollar credit that it hedges back into the yuan.