Offshore investors show growing interest in local currency bonds on the secondary market, possibly due to "buying the dip" strategy.

Offshore investors have shown a growing interest in local currency bonds on the secondary market, according to GCB Capital. This increased appetite may be a speculative strategy of "buying the dip" due to depressed prices, expecting price recovery with improving macroeconomic outlook. Until recently, secondary bond market activity was dominated by sell-buybacks and repo transactions.

March 11, 2024
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