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Quotes
If investors want the same return as before, they will need to take more risk. So if it was a range accrual it will need to be dual range accrual or some overlay on top
Structurer at a US bank in Hong Kong
The industry is still going to be staring at a pretty big mountain to climb for phase six from a capacity perspective, and that’s why no-one can take their eye off the ball
Ed Corral, JP Morgan
This market runs under something like ‘one country, two systems’. Local guys play by local rules and foreigners play by theirs
Chinese fund manager
Editor's Choice
Buy side continues with IM prep despite delays
Firms looking at custodian types, docs and trading strategies to optimise margin
Big Figure
Liquidity lacking
A stress test run by the European Securities and Markets Authority found that high-yield bond funds are most likely to struggle to redeem investor shares in a market crisis. Of 297 high-yield bond funds included in the test sample, 42.4%, representing 41% of net asset values (NAV), would not have enough liquid assets to cover outflows, assuming a redemption rate of 8.2% of NAV. In contrast, only 3.6% of emerging market funds, 1.2% of global fixed-income funds, 0.5% of mixed-income funds and 0.4% of euro fixed-income funds would experience a liquid asset shortfall.
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