Fixed Income Securities

Bubble trouble for fixed-income assets?

US Federal Reserve must keep interest rates low for a while longer. Photo: AFP

Fixed income was the hot asset of 2012, producing equity-like returns for debt-like risks. Within it, Asian bonds issued in US dollars produced stellar returns for investors.

Monday, 31 December, 2012, 4:58am

Bocom gets ready for loan-backed product launch

Bank of Communications (Bocom) is gearing up to issue a securities product backed by collateral loans as Beijing prepares to reopen the asset-backed securities (ABS) market after a three-year hiatus.

16 Jul 2012 - 12:00am

Minibond saga drawing to a close

As the closing chapter to the Lehman Brothers minibonds settlement, about 3,000 people who invested in the four series of minibonds directly issued by Lehman Brothers will get up to 70 per cent of their initial investment.

6 May 2015 - 5:14pm

Car finance firm to sell securities backed by assets

GMAC-SAIC Automotive Finance, the financing arm of General Motor's joint venture with Shanghai Automotive Industry Corporation, is set to issue a securities product backed by car loans.

5 Mar 2012 - 12:00am

Smart money

As Europe implodes in slow motion and the region's debt crisis threatens to drag the world down with it, Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das is a timely read. A sweeping history of modern money, the book explains the phenomenon of 'financialisation' in the past 30 years that has got us so irredeemably hooked on debt.

5 Mar 2012 - 12:00am

First-to-default notes a blast from the past

American comedian Will Rogers observed: 'You can't say civilisation don't advance ... in every war they kill you in a new way.'

Having barely survived the implosion of minibonds, Asian investors are now being tempted by 'new' similarly structured products.

12 Dec 2011 - 12:00am

Bonds away

There is a lot of confusion about minibonds. Given the size of settlements, the instruments were not mini, and they weren't bonds either. They were complex investments that involved a troublesome structure known as a collateralised debt obligation (CDO).

31 Oct 2011 - 12:00am

HKEx eases fears over derivatives

Investment banks will be banned from issuing warrants or other derivatives if their ratings fall below a certain threshold, Hong Kong Exchanges and Clearing said yesterday.

However, warrants already issued by such banks would be allowed to continue to trade but the issuers would need to continue to provide liquidity until the products expired, HKEx said.

24 Sep 2011 - 12:00am

The world can still come tumbling down for cornerstone investors

The market rout and volatility in Asia, and around the world, is likely to lead to an increasing number of cornerstone tranches in IPOs.

Very much a feature of new listings in Hong Kong and, to a lesser extent, Singapore, cornerstone investors are large institutions that commit in advance to buying a fixed, pre-agreed allocation in a transaction.

29 Aug 2011 - 12:00am

Hui Xian Reit fails to impress on debut

Hui Xian Real Estate Investment Trust, the first yuan-denominated share offering outside the mainland, had a less than stellar debut, dropping 9.35 per cent.

The reit was launched in a falling market, with the Hang Seng Index dropping 0.36 per cent yesterday, its fourth decline this week. The index lost 1.7 per cent this week.

30 Apr 2011 - 12:00am

HKMC profit rises 22.7pc

Government-owned Hong Kong Mortgage Corporation's post-tax profits increased by 22.7 per cent last year to HK$1.23 billion. The profit growth was driven by low interest rates and good loans performance. HKMC issues bonds to buy mortgage portfolios from banks and repackage them as mortgage-backed securities.

13 Apr 2011 - 12:00am

Of human mini-bondage

Does persistence and sheer bloody-mindedness pay off? Indeed, is it wise for investors to take on powerful financial institutions when they appear to have the backing of official regulatory bodies?

6 May 2015 - 5:14pm

Enforcer sees minibond deal as answer to critics

Hong Kong lacks processes to help victims of securities mis-selling get their money back, the chief enforcer of the city's markets watchdog says. But he thinks the buy-back scheme it struck with 16 banks will help address criticism over the saga.

30 Mar 2011 - 12:00am

Debate continues on 'professional investor'

What constitutes being a professional investor? Should it be someone who has an MBA or who has passed an examination on the stock and futures markets? Or should it be someone who wears a suit and tie as opposed to shorts and a T-shirt?

1 Jun 2010 - 12:00am

Law change to protect small investors

23 Apr 2010 - 12:00am