The opening of China’s domestic bond market is the single biggest opportunity in the global fixed income arena today, and securitisation is likely to be among the biggest beneficiaries.
IFR Asia China Securitisation Roundtable 2017: Roundtable participants
IFR ASIA: Welcome. Jerome, most of my research for this discussion comes from your note from a couple of weeks ago, so the first question is for you! What makes China securitisation an area of interest for the international community?
KYSON HO, HSBC: Some of the concerns that Jerome raised are also good for the development of the market. When everything is Triple A and all the deals repay within half a year, investors don’t really differentiate between good deals and bad deals. As economic conditions become less positive and different issuers also adopt different structures, in particular revolving deals and longer tenors, investors really have to think more. Then there will be more incentives for issuers and investors to demand well-structured transactions that are appropriate for the particular environment and the asset class.