Structured Finance

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.

Monday, 16 July, 2012, 12:00am

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

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

Oversight to ensure HK is a shopper's paradise

Hong Kong bills itself as a shopper's paradise, a term that implies that great deals can be had and consumers are king. There is no disputing that an Aladdin's cave of goods and services are on offer, and that prices can be competitive. But customers are not always well protected - at least when they purchase services rather than goods.

21 May 2010 - 12:00am

Why some are scenting blood on Wall Street

You might just get your hair styled by a 28-year-old called Fabrice who likes to refer to himself in the third person as 'the fabulous Fab'.

But it boggles the mind that anyone would invest more than US$1 billion in complex derivatives tied to the value of dodgy home loans structured and promoted by such a character.

21 Apr 2010 - 12:00am

Clear up this mess

The incessant dispute over compensation for Lehman Brothers minibond victims could seriously tarnish Hong Kong's image as an international financial centre. And without proper closure, protests by victims will continue to be a common sight outside banks in Central.

18 Jul 2009 - 12:00am

Bank of China profit drops 14.4pc on lower interest and fee incomes

Bank of China, the nation's largest foreign exchange lender, said first-quarter profit fell 14.41 per cent, hit by lower net interest and fee incomes.

The bank said yesterday its net attributable profit for the quarter totalled 18.57 billion yuan (HK$21.08 billion), down from 21.7 billion yuan a year earlier but 320 per cent higher than in the previous quarter.

29 Apr 2009 - 12:00am

Banks may need 2 years to regain appetite for risk

It could take Hong Kong banks up to two years to recover from the blow to confidence delivered by the global financial crisis and resume a more aggressive approach to risk management, Hang Seng Bank's outgoing head of treasury Jack Cheung Tai-keung says.

27 Apr 2009 - 12:00am

Fubon going back to basics after net dives 78pc

Fubon Bank (Hong Kong), a subsidiary of Taiwan financial conglomerate Fubon Financial, said it would review its cost structure and seek further integration with its parent company after earnings slumped 78 per cent last year.

11 Mar 2009 - 12:00am

URA may issue bonds to raise cash for projects

Redevelopment body given same credit rating as HK government

The Urban Renewal Authority is considering increasing its cash for upcoming acquisitions by issuing bonds and borrowing from banks, which could be made easier after it was issued a top credit rating by Standard & Poor's yesterday.

24 Dec 2008 - 12:00am