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BNP’s Asset Unit Shorts China Rate Swaps to Hedge EM Bond Bets

Source: Bloomberg

Emerging MarketsCredit & Bond MarketsInterest Rates & YieldsDerivatives & VolatilityInvestor Sentiment & Positioning

BNP Paribas Asset Management is maintaining bullish exposure to higher-yielding emerging-market bonds while hedging the position through short offshore Chinese interest-rate swaps. The strategy signals a constructive view on EM carry alongside caution over Chinese interest-rate risk.

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