Highlights from IMN’s 1st Annual Asian Structured Credit Summit

Last month, Vistra’s Capital Markets team were amongst the 500+ attendees at IMN’s 1st Annual Structured Credit Summit. The event, held in Hong Kong was attended by bankers, law firms, rating agencies and asset managers covering the Pacific Rim markets. Notably there was a significant Australian presence and a number of European and US asset managers covering Asian markets. 

Given the relatively new and developing structured credit market in Asia, the summit focused on the fundamentals of structured credit markets and products with the panel discussions taking a deeper dive into CLOs work, terminology, structure, investor protections and comparisons of NPLs, CLOs, CMBS and RMBS structures. 

A core area of discussion for many participants was the growth of securitisation and structured credit products across Chinese markets.

With nearly USD200 billion in issuance to date, the on- shore Chinese ABS market has grown rapidly. The major asset classes include auto receivables, credit card receivables and RMBS; furthermore, the introduction of “Bond Connect” for accessing the bond markets in mainland China has generated significant interest from investors as it ensures planned inclusion of Chinese onshore assets into global indices from next year. Furthermore, recent reforms introducing DvP (delivery-versus-payment) settlement, block trading and a tax exemption for foreign investors are also fuelling the accelerated growth in this market. However, the regulatory landscape in China is still evolving and investors are seeking further clarity before they fully commit.

To read Navita Yadav’s article on the growth of ABS opportunities in Asian markets, use the download below.