Dim sum bonds tipped to boost nascent repo market

Dim sum bonds will be deployed as collateral in cross-border repurchase agreements by the end of this year, according to bankers. Such a transaction will make clear the willingness of banks, prime brokers and other financial actors in the region to accept Asian securities to support their short-term funding needs. Already, bankers say repo sellers are using Japanese and Korean treasuries, and Australian equities to borrow cash within the region. While repos are rarely done in …