Fixed Income
  • Creditworthiness of Chinese provincial governments

    Source: Liang Zhong
    Date Submitted: 20 Feb 2019
    Views: 0
    Downloads: 0
    Credit quality of Chinese provincial governments capturing their relative strength in multiple aspects appears to be converging to the average. Only a few provincial-level governments in China stand out for their stronger credit quality. 
  • WEBINAR: The Climate Bonds Taxonomy & Green Bond Database Methodology

    Source: Sean Kidney
    Date Submitted: 18 Feb 2019
    Views: 21
    Downloads: 0
    Climate Bond Initiative's Climate Bonds Taxonomy identifies assets and projects needed to deliver a low carbon economy and provides screening criteria consistent with the climate goals of the Paris Agreement. (Video: 60 min.)
  • S&P Shariah Indices Scorecard Q4 2018

    Source: John Welling, Michael Orzano
    Date Submitted: 18 Feb 2019
    Views: 9
    Downloads: 1
    S&P Dow Jones presents a quarterly update on Shariah and Islamic Market Indices as of 31 December 2018.
  • Leading viewpoint: 2019's green investment picture

    Source: Sean Kidney
    Date Submitted: 18 Feb 2019
    Views: 8
    Downloads: 1
    Lack of standards is not hindering green bond issuance, while pressure on corporations to finance the energy transition intensifies, argues Sean Kidney, CEO of Climate Bonds Initiative.
  • ASEAN green financial instrument guide

    Source: Climate Bonds Initiative
    Date Submitted: 11 Feb 2019
    Views: 10
    Downloads: 1
    Several financial instruments and mechanisms are available for public and private entities in ASEAN that look to fund green assets through equity, debt and partnerships. This step-by-step guide gives an overview of the financing process and its implementation.
  • ASEAN green finance: State of the market 2018

    Source: Climate Bonds Initiative
    Date Submitted: 11 Feb 2019
    Views: 203
    Downloads: 5
    This report examines the progress that has been made and the opportunities lying ahead for green bonds in ASEAN countries. It looks at regional themes in green bond markets and issuance from companies that operate in climate-aligned sectors.
  • Lender moral hazard in state-owned banks: Evidence from an emerging economy

    Source: Balagopal Gopalakrishnan, Joshy Jacob, Ajay Pandey
    Date Submitted: 11 Feb 2019
    Views: 20
    Downloads: 3
    India's public sector banks are more likely to lend to riskier firms than private sector banks. Their lending choices include riskier service sector firms, those that borrow by pledging promoter shares and those likely to be impacted by political change.

    The paper was presented in the 2018 India Finance Conference held at Indian Institute of Management, Calcutta, India.
  • Changes in India’s investment sphere – an overview of 2018

    Source: Koel Ghosh
    Date Submitted: 22 Jan 2019
    Views: 65
    Downloads: 0

    Record highs, volatility, growth of passive investing and SEBI's efforts to standardize India's mutual funds offering and make it more transparent are some of the themes India's financial markets saw in 2018.

  • The importance of China onshore bonds in a portfolio context

    Source: Hong Xie
    Date Submitted: 22 Jan 2019
    Views: 649
    Downloads: 0
    China’s onshore bond market is the third-largest in the world, but only 2.5% of it is owned by foreign investors. As market access issues are resolved, the ownership share is expected to grow.
  • Indonesia property: 2019 outlook

    Source: Lakshmanan R, Rohan Kapur
    Date Submitted: 13 Jan 2019
    Views: 43
    Downloads: 0
    What are the key drivers that will shape the course of Indonesian property market in 2019? CreditSights provides a credit outlook for the Indonesian property market and individual company recommendations.
  • Constructing a systematic asset allocation strategy: The S&P Dynamic Tactical Allocation Index

    Source: Phillip Brzenk
    Date Submitted: 01 Jan 2019
    Views: 662
    Downloads: 30
    The S&P Dynamic Tactical Allocation Index (DTAQ) uses a systematic approach to asset allocation by incorporating dynamic and tactical investment strategies into the index design. The index seeks to provide higher risk-adjusted returns than the broad market irrespective of the economic environment.
  • Request for comment: Green evaluation criteria

    Source: Stanley Tsai, Cyrus Chan, Stanley Tsai
    Date Submitted: 16 Dec 2018
    Views: 509
    Downloads: 27

    Pengyuan International, a Hong Kong-based credit agency, publishes a draft of its evaluation criteria for green bonds, for public consultation. The framework aims to evaluate the potential contribution of debt instruments to low-carbon and climate-resilient society.

  • 2019 Multi-asset outlook: The market’s current anxiety is just a midlife crisis

    Source: Michael J. Kelly, CFA
    Date Submitted: 19 Nov 2018
    Views: 99
    Downloads: 23
    Market pressures from rising interest rates, an abrupt slowdown in China and lacklustre corporate profits should abate by mid-2019 and the bull market should then resume. But the growing tensions between US and China remain a wild card.
  • S&P Shariah Indices Scorecard Q3 2018

    Source: John Welling, Michael Orzano
    Date Submitted: 11 Nov 2018
    Views: 148
    Downloads: 4
    How did S&P Dow Jones Islamic Market Indices perform in the third quarter of 2018?
  • China property: Credit profiles to improve on lower land acquisitions and solid sales

    Source: Winnie Guo
    Date Submitted: 31 Oct 2018
    Views: 102
    Downloads: 10

    Unchanged policy stance, continuing sales momentum, slowing land acquisitions, steady growth of property funding, improving working capital efficiency and declining leverage are the main factors in a forecast for China's property sector. 

  • SPIVA India Scorecard Mid-Year 2018

    Source: Akash Jain
    Date Submitted: 24 Oct 2018
    Views: 121
    Downloads: 8
    The SPIVA India Scorecard reports on the performance of actively managed Indian mutual funds compared with their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.
  • VIDEO: ​SPIVA India Year-End 2017 Scorecard

    Source: Neyaz Shaikh, Akash Jain
    Date Submitted: 22 Oct 2018
    Views: 151
    Downloads: 0
    How do active managers stack up to their benchmarks in India? Join Neyaz Shaikh and Akash Jain from S&P BSE Indices as they dive into the SPIVA data. (Video: 3 min.)
  • Changing geography of aviation finance funding

    Source: David Yu
    Date Submitted: 22 Oct 2018
    Views: 170
    Downloads: 15
    New players in the aircraft leasing business, such as commercial banks and insurance companies are adding to the geographic diversity of funding sources. This paper analyses new trends and the roles of the newcomers in the sector.
  • New Aviation Silk Road – trends, drivers, and lessons in cross-border investments and M&A in aviation

    Source: David Yu
    Date Submitted: 22 Oct 2018
    Views: 460
    Downloads: 17
    A review of cross-border investment and M&A activity in the aviation industry, highlighting a growing number of global outbound investments from Chinese investors. What are the drivers of their investment activity and lessons to be learned? 
  • Pengyuan International issues a request for comments on general structured finance rating criteria

    Source: Ke Chen
    Date Submitted: 19 Oct 2018
    Views: 37
    Downloads: 2

    Pengyuan International, a Hong Kong-based credit rating agency, publishes a call for public consultation on its general structured finance rating criteria. It invites investors and market participants to submit comments within 30 days. 


  • China Property Navigator 3Q18: Housing Policies

    Source: Cheong Yin Chin, CFA, Luther Chai
    Date Submitted: 15 Oct 2018
    Views: 715
    Downloads: 0
    Tighter restrictions on resale of housing units, expansion of home purchase restrictions and priority to first-time buyers are some of the tools China's local governments use to fine-tune their housing policies. CreditSights Q3 2018 report provides updates on China's property market. (Paid content, free trial)
  • ​VIDEO: Institutional carbon efficiency: Japan’s GPIF looks to S&P DJI to achieve green objectives

    Source: Hannah Skeates, Andrew Innes, Neil McIndoe
    Date Submitted: 04 Oct 2018
    Views: 146
    Downloads: 0
    Institutional investors, including Japan’s GPIF, are increasingly integrating ESG into their strategies. S&P DJI's Hannah Skeates and Andrew Innes are joined by Trucost’s Neil McIndoe to talk about how the innovative S&P Carbon Efficient Indices are being used as institutional portfolio building blocks. (Video: 8 min)
  • SPIVA® Australia Mid-Year 2018 Scorecard 

    Source: Priscilla Luk
    Date Submitted: 02 Oct 2018
    Views: 70
    Downloads: 2
    The SPIVA Australia Scorecard reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over 1-, 3-, 5-, 10-, and 15-year investment horizons.
  • India's Growing Fixed Income Market

    Source: Alka Banerjee, Managing Director, Product Management
    Date Submitted: 18 Sep 2018
    Views: 167
    Downloads: 0

    The Indian debt market has grown to USD 1.5 trillion over the past decade, largely due to the issuances from the central and state government. The ratio of government securities to corporate issuances is about 75 to 25, reflecting the subdued state of corporate bond markets in India. With a lack of participation, the Indian debt market remains smaller than the equity market—an anomaly among other global markets. 

  • Personality Driven Portfolio How to invest right for your style

    Source: SAM PHOEN
    Date Submitted: 14 Sep 2018
    Views: 1055
    Downloads: 22
    Personality Driven Portfolio
    How to Invest Right for Your Style
    Published by Marshall Cavendish Business, 2018

    Have you ever thought about how YOUR Personality might affect your Portfolio?
    • Are you wondering why your investments don’t seem to do as well as others?  
    • Do you often own the right stocks, but find yourself either taking profit too early or not taking profit early enough and now sitting on losses?
    • You have been following the recommendations of top analysts and portfolio managers, why aren’t you making as much out of these investments? 
    • Is the performance of your investments keeping you awake at night? 
    You are not alone…
    Very often, we construct our investment portfolio by following the best research and recommendations out there.  However, the investment returns are rarely optimal. One of the main reasons is that these investments may not be suitable for you!
    Constructing an investment portfolio is not a one-size-fits-all exercise.  What works for other top investors may not necessarily work for you.  Following them blindly can lead to a disastrous mismatch with your own investing style.

    Successful investing starts with KNOWING YOURSELF.
    What investment personality are you?  Are you a Diligent Deer, an Egoistic Elephant, a Cagey Crab, or perhaps a Busy Bee?

    Understanding your investment personality would be the first step to constructing a bespoke portfolio for yourself - one that will suit your personality to a T, and put you in the best position to reap sustained results over the long term!

  • Fixed Income Asset Allocation Insights: Remaining Patient in Emerging Markets

    Source: Robert Vanden Assem, CFA
    Date Submitted: 11 Sep 2018
    Views: 117
    Downloads: 15
    The worsening Turkish currency crisis has led to fears of contagion within emerging markets (EM) debt, widening the EM/US spread differential to historic levels. That is due in part, however, to US investment grade (IG) and high-yield (HY) bonds benefiting from stronger-than-expected earnings, a relatively light new issuance calendar and positive fund flows from retail mutual fund and ETF investors. With our target allocations unchanged, we continue to favor EM debt, which we expect to benefit from attractive valuations, positive trade developments and a moderation in US dollar strengthening. We also continue to find attractively priced IG and HY credits.
  • Investment Strategy Insights: Is The Dollar Destined To Remain Almighty?

    Source: Michael J. Kelly, CFA
    Date Submitted: 11 Sep 2018
    Views: 572
    Downloads: 24

    It turns out that “America First” has been an apt way of thinking of markets in 2018. US dollar strength is being attributed to emerging markets’ (EM) financing issues, commodity weakness, and seemingly anything else that cannot easily be explained. This leads many to wonder when the dollar’s upward trajectory will have run its course.

    With quantitative easing peaking soon, growth and rate differentials are mattering more. The US came into 2017 as the global growth laggard, yet quickly moved to the front of the pack in 2018 by accelerating while others plateaued. Much of this non-US pause probably rests as much with the powers that be in Beijing as it does with those in Washington.

    Before pulling back late in 2017 and early 2018, China’s policy initiatives pushed for growth in the lead up to the 19th Party Congress. With Europe and EM depending more on trade with China than they do with the US, China’s success or failure in handling its debt, managing its currency, and dealing with tariff issues will have a far greater impact on those nations than it will on the US.

    Europe’s current slow growth, in fact, can be attributed in large measure to China’s careful steps to encourage slow domestic growth, which has cooled demand for goods from Europe and constrained the performance of many European companies that are export dependent.

    Worries about EM dependence on China are partly the reason EM has underperformed developed markets (DM) in all asset classes by about 10% in the past year. Turkey and Argentina’s woes are unique and self-inflicted, yet still fuel fear that the Federal Reserve is on an overly ambitious pursuit of the dot plot, eventually crushing all EM.

  • Investment Strategy Insights: Yield-Curve Inversion in a World of Funhouse Mirrors

    Source: Michael J. Kelly, CFA
    Date Submitted: 13 Aug 2018
    Views: 1071
    Downloads: 27

    In pre-crisis days, market participants understood that central bankers had their hands on the short-term end of the yield curve and knew how to react when rates were dialed down to boost a sluggish economy or up to cool an overheated one.

    In response to the financial crisis, mission creep set in. Leading central banks moved into the long end of the curve, where rates traditionally had been determined solely by market forces. Yesteryear’s yield curve, therefore, was a transparent comparison between the market’s view of the economy down the road versus the Federal Reserve’s. When the 10-year Treasury rate fell below the two-year rate, creating an inverted yield curve, recession typically followed 18 months later – a report card suggesting that the market had superior forecasting powers. Today’s yield curve may have morphed into a kind of financial funhouse, where the rates we see are distorted images of market-determined rates.

  • Request for Comments - Industry Credit Guidelines: Chinese Homebuilders and Property Developers

    Source: Winnie Guo, Tony Tang
    Date Submitted: 05 Aug 2018
    Views: 626
    Downloads: 11

    HONG KONG, 3 August 2018. Pengyuan International (“PENGYUAN”) has today released its  Industry Credit Guidelines for the Chinese Homebuilders and Property Developers for public consultation.


    These criteria will be effective immediately on the date of final publication. We intend to complete a review of all affected ratings, if any, within the next six months. We expect no impacts on our current rating portfolio. We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment versions of these reports are available via the links below.



    Our Industry Credit Guidelines: Chinese Homebuilders and Property Developers describe our analytical approach to assessing the credit risks of companies that have more than 50% revenue generated from China homebuilder and property developer industry. These criteria are developed within the framework of PENGYUAN’s General Corporate Rating Criteria and are supplementary to our General Corporate Rating Criteria. In addition to the credit ratios that are used in the Corporate Rating Criteria, PENGYUAN considers specific credit factors that capture the risks from China homebuilder and property developer industry, which are assessed to derive a company’s indicative credit score. 

  • Request for Comments - Government-Related Entities Criteria

    Source: Stanley Tsai, CFA, Liang Zhong, Tony Tang
    Date Submitted: 05 Aug 2018
    Views: 792
    Downloads: 7

    HONG KONG, 3 August 2018. Pengyuan International (“PENGYUAN”) has today released its Government-Related Entities (GRE) Rating Criteria for public consultation.


    These criteria will be effective immediately on the date of final publication. We intend to complete a review of all affected ratings, if any, within the next six months. We expect no impacts on our current rating portfolio. We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment versions of these reports are available via the links below.


    Our Government-Related Entities Rating Criteria set forth PENGYUAN’s approach to rating GREs in the corporate (including project finance), financial institution, insurance and public finance sectors globally. In our opinion, an issuer’s affiliation with the government may have a positive, negative or neutral impact on its overall creditworthiness. One of our primary considerations in analyzing a GRE is whether its credit profile may be enhanced by potential extraordinary support from the government in the event of financial distress, or conversely, impaired by potential extraordinary adverse interventions from the government should the government experience financial difficulties.

  • Shariah Report 2018 Q2

    Source: John Welling, Michael Orzano
    Date Submitted: 30 Jul 2018
    Views: 63
    Downloads: 1
    Take a look at how the Shariah Indices performed in the 2018 Q2.
  • Is Thailand’s credit default swap market linked to bond and stock markets? Evidence from the term structure of credit spreads

    Source: Boonlert Jitmaneeroj
    Date Submitted: 04 Jul 2018
    Views: 821
    Downloads: 22
    When the term structure of credit spreads is used in a panel vector autoregression model, Granger causality tests provide strong evidence of bi-directional relationships among CDS, bond and stock markets. This study argues that extant research using only a 5-year credit spread tends to understate intermarket linkages since in practice investors are able to trade credit risk over the entire term structure of credit spreads. Interestingly, this study produces new empirical evidence that the term structure of CDS-bond basis displays a monotonically increasing trajectory. As the maturity lengthens, the arbitrage opportunity of companies with negative (positive) CDS-bond basis decreases (increases).
  • A Look Inside Green Bonds: Combining Sustainability With Core Fixed Income

    Source: Dennis Badlyans, Aye M. Soe, Hong Xie
    Date Submitted: 01 Jul 2018
    Views: 1214
    Downloads: 70
    The S&P Green Bond Index provides a rules-based, transparent benchmark to measure the performance of the global green bond market.
  • TalkingPoints: The S&P/ASX Bank Bill Index - Measuring the Australian Bank Bill Market for Short-Term Cash Solutions

    Source: Heather McArdle
    Date Submitted: 22 Jun 2018
    Views: 96
    Downloads: 1
    The S&P/ASX Bank Bill Index seeks to measure the performance of the Australian bank bill market, with maturities of up to 91 days. The series is designed for use by institutional investment managers, mutual fund managers, professional advisors, insurance companies, and custodians.
  • Fixed Income Liquidity and ETFs in India

    Source: Alka Banerjee
    Date Submitted: 06 Jun 2018
    Views: 773
    Downloads: 0
    The fixed income market has historically been relatively illiquid in India, as well as globally. Bond ETFs may be able to solve these issues, which may be part of the reason bond ETFs have soared in popularity in developed markets recently.
  • The Carbon Scorecard May 2018

    Source: Jessica Taylor, Alex Lake, Christina Weiman
    Date Submitted: 04 Jun 2018
    Views: 305
    Downloads: 24
    S&P Dow Jones Indices is committed to providing index solutions that provide choices and reflect low-carbon options. When we compare almost all the indices with their carbon-focused counterparts, the low-carbon versions actually outperformed the benchmark over a five-year period.
  • CFA Institute and PRI survey on ESG integration in Asia

    Source: Justin Sloggett, CFA, Matt Orsagh, CFA
    Date Submitted: 24 May 2018
    Views: 1218
    Downloads: 0

    CFA Institute and PRI survey on ESG integration in Asia
    In 2017, CFA Institute and the PRI agreed to undertake an ESG investing study that entails a survey, a series of workshops and the release of four reports: one case study report and three regional reports. The aim of the study is: 

    1. to understand the current state of ESG investing in listed equity and fixed income across the AMER, EMEA and APAC regions; 
    2. to analyse the drivers, barriers and solutions of ESG investing.

    We would like you to help us by responding to the survey:

    The results of the study and the feedback from the workshops will be published in the regional reports. There will also be regional and country guidance and case studies on how investors are integrating ESG issues into their investment analysis and decisions. These reports will be readily available for all CFA members and PRI signatories.
    The survey contains two sets of questions that should take roughly 8 – 10 minutes to complete. It covers the impact of ESG investing at the financial market level and firm level. It is being completed by participants across seventeen countries.
    If you like to fill out the survey, please do so by 15 June. We appreciate your response.


    ESG Integration Explained: An Alpha-Generating and Risk-Reducing Tool

    The term “ESG integration” is often used when talking about ESG investing. Practitioners new to ESG investing are sometimes uncertain what ESG integration is and how it is performed—so much so that they may not realize they are already performing integration techniques informally.

    One definition of ESG integration is “the explicit and systematic inclusion of ESG issues in investment analysis and investment decisions.” Put another way, ESG integration is the analysis of all material factors in investment analysis and investment decisions, including environmental, social, and governance (ESG) factors.

    What does that mean? It means that leading practitioners are:

    • analyzing financial information and ESG information;
    • identifying material financial factors and ESG factors;
    • assessing the potential impact of material financial factors and ESG factors on economic, country, sector, and company performance; and
    • making investment decisions that include considerations of all material factors, including ESG factors.

    What does that not mean? It does not mean that

    • certain sectors, countries, and companies are prohibited from investing;
    • traditional financial factors are ignored (e.g., interest risk is still a significant part of credit analysis);
    • every ESG issue for every company/issuer must be assessed and valued;
    • every investment decision is affected by ESG issues;
    • major changes to your investment process are necessary; and, finally and most importantly, 
    • portfolio returns are sacrificed to perform ESG integration techniques.
  • Requests for Comments: Chinese Local Government Rating Criteria

    Source: Liang Zhong
    Date Submitted: 24 May 2018
    Views: 218
    Downloads: 8

    HONG KONG, 23 May 2018. Pengyuan International has today released its Chinese Local Government Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio.

    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:

    Chinese Local Government Rating Criteria:

    Our Chinese Local Government Rating Criteria describe our top-down approach to assessing the credit risks of all local governments (LGs) and assigning issuer credit ratings (ICRs) and issuance credit ratings to LGs in China. We explain how we assess the key rating factors (namely a LG’s economic strength, budgetary strength, debt burden, liquidity, and governance and financial management) that together drive a LG’s relative credit strength compared to peer LGs reporting directly to the same higher-level government. We combine the relative strength score of the LG with the rating on its higher-level government and our other analytical considerations to determine ICR on the LG. 



    Chief Analytics Officer
    Tony Tang
    +852 3615 8278

    Sovereign and Public Finance
    Liang Zhong
    +852 3615 8341

  • Shariah Report 2018 Q1

    Source: John Welling, Michael Orzano
    Date Submitted: 11 May 2018
    Views: 90
    Downloads: 5
    Take a look at how the Shariah Indices performed in the 2018 Q1.
  • China in Brief: Some Debts Good, Some Debts Bad

    Source: Sandra Chow, CFA, Ang Ben You, Cheong Yin Chin, CFA
    Date Submitted: 07 May 2018
    Views: 271
    Downloads: 0
    • Chinese banks and corporates have now released their full FY17 financial statements, following preliminary results in March.  The reports revealed how China's clampdown on leverage is starting to affect individual issuers in different ways.
    • Chinese banks' FY17 operating metrics showed the larger banks (the big six and larger joint stock banks) emerging stronger than the smaller banks from the government's deleveraging campaign, in terms of profitability and asset quality.   Because larger banks have been net interbank lenders, profitability has benefited from higher interbank rates. Asset quality also showed positive trends with special mention loan ratios falling and NPL (non-performing loan) classification actually becoming more conservative. On the other hand, the weaker joint stock and city commercial banks have seen profitability take a hit due to more expensive interbank funding costs. Their deteriorating asset quality shows them as being disproportionately affected by China's deleveraging campaign. 
    • Asset growth showed broad moderation at the banks in FY17, though growth rates were still higher at the smaller ones. The big six banks reported broadly lower asset growth rates compared to FY16. This trend can be extrapolated to the joint stock and city commercial banks, though here the picture was more mixed, with a few still seeing expansion. Slower asset growth was driven mainly by investment receivables, which fell as a % of assets at many banks. Banks' exposure to shadow loans should continue to shrink this year given the emphasis on fighting financial risks; we expect more regulations targeted at these items. 
    • Chinese real estate firms' liquidity weakened during FY17, despite robust contracted sales.  Slower mortgage approvals amid China's credit tightening delayed the companies' cash collections.  Undeterred, the developers continued heavy land acquisitions and most surpassed their FY17 land purchase budgets. All of the developers we cover aside from Greenland Hong Kong posted negative free cash flow last year. We see more bond supply risk from the China property sector as the developers plug their funding gaps with fresh onshore and offshore debt. The authorities do not seem to be clamping down heavily on developers' funding sources: onshore bond issuance among the Chinese high yield developers we track soared by 76% up to 20 April this year, compared to the same period in 2017. Offshore bond issuance has also remained steady, although rising risk aversion among $ bond investors is crimping appetite for Chinese property bonds and prompting more issuance of short-dated paper.
    • The Chinese industrial companies we track posted solid FY17 results overall, with companies ranging from car maker Geely Auto, piped gas provider China Oil & Gas and infant formula provider Health & Happiness reporting improving operations and stable or stronger credit metrics. With more prudent capex plans than the property developers, funding needs are generally lower. But regulatory approval for bond issuance seems to be on a case-by-case basis and issuers from overcapacity industries may find it harder to gain approval. Aluminium producer China Hongqiao, for instance, issued a 363-day bond in April, suggesting that investors were taking a cautious view of Hongqiao's long-term credit outlook, or that the company struggled to obtain an issuance quota from China's National Development and Reform Commission (deals of under 1 year maturity are not subject to NDRC approval). Yet the authorities are also supporting new funding channels selectively, presumably to ease the impact of credit tightening. West China Cement reported that it enjoys tax-free income from its new finance lease business, for instance.
    • We expect China will continue to tweak credit restrictions selectively, in order to rein in excessive leverage without causing a credit crunch.  Regulatory approval can be forthcoming to fund projects that are in line with government policies. For example, despite the general credit tightening, Chinese developers can obtain large quotas for China's new 'Rental Apartment Special Bonds' (长租公寓REIT), as the government tries to tackle the problem of housing affordability.  Amid the deleveraging campaign, it seems that not all debt is bad after all.
  • How Are International Trade Issues Influencing Global Markets?

    Source: Sam Tsui, Blu Putnam
    Date Submitted: 04 May 2018
    Views: 647
    Downloads: 0
    The fear of trade war has been intensified with announcement of import tariff by the U.S. S&P DJI’s Sam Tsui sits with CME Group’s Blu Putnam to discuss the international trade issues and the impacts on the economies.
  • Request for Comments: Sovereign Rating Criteria

    Source: Liang Zhong
    Date Submitted: 25 Apr 2018
    Views: 447
    Downloads: 6

    HONG KONG, 25 Apr 2018. Pengyuan International has today released its Sovereign Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio. 


    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:


    Sovereign Rating Criteria: 


    Our Sovereign Rating Criteria describe our analytical approach to assessing the credit risks of all sovereigns and assigning issuer credit ratings (ICRs) and issuance credit ratings to sovereigns. We explain in detail how we assess the key rating factors (namely a sovereign issuer’s debt burden, stage of economic development, economic fundamentals, institutions and policies and distinctive movers of underlying liquidity risk) that together drive a sovereign’s indicative credit score (ICS). We also outline our other analytical considerations, which, together with the ICS, will determine an entity’s Issuer Credit Rating.  

    For these criteria, we define a sovereign as a member state of United Nations or a state that runs its own government, enjoys fiscal independence and determines its own monetary regime.


  • AsianFA Return-Based Factors for Corporate Bonds

    Source: Turan G. Bali, Avanidhar Subrahmanyam, Quan Wen
    Date Submitted: 08 Apr 2018
    Views: 94
    Downloads: 3
    The cross-section of corporate bond returns strongly depends on past bond returns. Comprehensive transaction-based bond data yield evidence of significant return reversals and momentum. Return-based factors for corporate bonds carry sizable premia and provide strong explanatory power for returns of industry- and size/rating/maturity-sorted bond portfolios. We also provide an illiquidity-based explanation of short-term reversal and show that momentum and long-term reversals are prevalent mainly in the high credit risk sector. Further, long-term reversals occur mainly in downgraded bonds (with low returns), indicating that downgrading increases the risk of holding the bonds, thus increasing the required return.
  • AsianFA---Does Public Information Disclosure Crowd Out Private Information Production?

    Source: Jia Chen, Ruichang Lu
    Date Submitted: 01 Apr 2018
    Views: 215
    Downloads: 3

    This paper investigates how public information disclosure affects private information production. We consider an increase in public information disclosure in the corporate bond market and measure information production by using the number of bond analyst reports, the number of pages in the reports, and the file size of the reports. We find that when public information disclosure increases, there is a reduction in private information production, indicated by fewer reports, fewer pages, and smaller file sizes. We then examine how pricing efficiency changes and find the lower delay of bond prices, bond prices that more closely approximate random walks, and shorter bond return drift after bond analyst reports or credit rating changes.



  • How Did Australian Active Funds Perform in 2017?

    Source: Priscilla Luk
    Date Submitted: 09 Apr 2018
    Views: 288
    Downloads: 0
    This blog post examines the SPIVA® Australia Scorecard, which reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over various investment horizons.
  • SPIVA® India Scorecard

    Source: Akash Jain
    Date Submitted: 28 Mar 2018
    Views: 104
    Downloads: 3
    The SPIVA India Scorecard compares the performance of actively managed Indian mutual funds with their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.
  • Persistence of Australian Funds

    Source: Priscilla Luk
    Date Submitted: 27 Mar 2018
    Views: 821
    Downloads: 12
    In this report, we measure the performance persistence of Australian active funds that outperformed their peers and benchmarks over consecutive three- and five-year periods, and we analyze their transition matrices over subsequent periods.
  • SPIVA U.S. Year-End 2017 Scorecard

    Source: Aye Soe, Ryan Poirier
    Date Submitted: 20 Mar 2018
    Views: 182
    Downloads: 0
    Since its first publication 16 years ago, the SPIVA Scorecard has served as the de facto scorekeeper of the active versus passive debate.
  • SPIVA Australia Year-End 2017 Scorecard

    Source: Priscilla Luk
    Date Submitted: 16 Mar 2018
    Views: 688
    Downloads: 5
    The SPIVA Australia Scorecard reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over 1-, 3-, 5-, 10-, and now 15-year investment horizons.
  • Asian Fixed Income: Mega 30 in China Versus U.S.

    Source: Michele Leung
    Date Submitted: 03 May 2018
    Views: 17971
    Downloads: 0
    Despite the lackluster performance of Chinese bonds in 2017, the market value tracked by the S&P China Bond Index continued to expand and reached CNY 56.9 trillion (USD 9 trillion).
  • China Bond Market Development: 2017 in Review

    Source: Michele Leung
    Date Submitted: 27 Feb 2018
    Views: 299
    Downloads: 9
    As represented by the S&P China Bond Index, the one-year total return was down by 0.29%, contrasting with the strong gains observed in previous years.
  • China’s Turning To “Tough Gradualism” In Disciplinng Local Government Borrowing Foretells Higher Risk of LGFV Default

    Source: Liang Zhong
    Date Submitted: 27 Feb 2018
    Views: 773
    Downloads: 6
    Creditors to China’s local government financing vehicles (LGFVs) may have some reasons to worry about their investment in these entities. Ministry of Finance in China vowed last month to break decisively the illusion of financial institutions about government bailing them out of hidden debt incurred by local governments (primarily through LGFVs). A central bank official even suggested to resort to a Detroit-type bankruptcy of local government (LGT) to break moral hazard in lending to LGFVs. These developments bring back the memory of the bankruptcy of GITIC (Guangdong International Trust and Investment Company), a high profile LGFV in China in 1999 amid mounting risk of local government hidden borrowing.
    However, history progresses in spiral, according to the guiding philosophy of Chinese policymakers. Thus, no wondering China appears to be getting closer to, yet is quite away from point where central government has to resort to default on LGFV bond to instill financial discipline and secure the systemic stability. Pengyuan International believes Chinese government is indeed turning to “tough gradualism” (gradually tightening discipline over LGT borrowing in practice) rather than “shock therapy” (allow LGFV default up-front); Accordingly, the risk that the first LGFV public bond default could strike in 2018 is picking up from very low level, but is still less than 50% in our estimate.  Nevertheless, further scrutiny over LGFV creditworthiness becomes increasingly necessary.
  • Asset-Backed Securitization (ABS) in China: Development and Risk

    Source: Dr. Ke Chen
    Date Submitted: 26 Feb 2018
    Views: 1211
    Downloads: 36
    Asset-Backed Securitization (ABS) is relatively new to China’s financial market. It was introduced into China with a pilot securitization program in 2005 and was suspended in 2008 due to the panic of global credit crisis. Later on, the asset securitization was reinstated in 2012. However, China’s ABS market development was very slow until the explosion in 2014 after several policies in favor of asset securitization were issued. The growth was further spurred by the change of the ABS offering system from approval to registration system at the end of 2014. In 2017, the volume of domestic new issuances surged 64.7% to approximately CNY1,495 billion.
    The tremendous growth in China’s asset securitization market is driven by both government policies and market forces. While the origin, suspension, and development of China’s asset securitization are all initiated by the government, with the relaxation of policy constraints, the market factors start playing an increasingly important role in driving the market developments. On the supply side, banks have incentives to convert illiquid assets into marketable securities and transfer the loans off their balance sheet to release capital. Financially underserved corporates start using securitization as an alternate direct financing tool to diversify their funding sources and lower their funding costs. On the demand side, the developments of securitization are fueled by China households’ high
    saving ratios and the increased demand for safe and liquid assets by the asset management industry.

    While the developments of China’s asset securitization market are encouraging, the rapid expansions were accompanied by potential risks, such as misaligned incentives among the participants in the securitization process, a lack of transparency regarding underlying assets, and reliance on credit ratings and risk models which have not been tested by a stressed credit environment. These problems could possibly impede the potential benefits offered by securitization and hinder the development of China’s asset securitization market.

    Against the background, this report attempts to discuss some key issues in China’s securitization market. We start with a brief review on the history and recent developments of China’s asset securitization market. We also provide our outlook for the developments of major asset classes. We then use marketplace lending securitization and NPL securitization as examples to illustrate the potential issues in China’s securitization market. Finally, we discuss the future of China’s securitization market both from a policy and market perspective.
  • Webinar: China Property-The Significance of the Property Sector to China's Economy

    Source: Cheong Yin Chin, CFA, Luther Chai
    Date Submitted: 25 Feb 2018
    Views: 388
    Downloads: 0
    Residential home prices in China have been kept steady by an onslaught of tightening policy measures across the country since September 2016. With cities such as Lanzhou relaxing some of its restrictive measures at the start of this year, could we be on the cusp of an easing cycle?

    This on-demand 15-minute webcast explains the importance of the Chinese real estate sector and delivers a summary overview of our recent research reports. 
  • India ETFs Wrap-up: 2017

    Source: Mahavir Kaswa
    Date Submitted: 22 Feb 2018
    Views: 382
    Downloads: 0
    As of Dec 31, 2017, the total AUM of the ETF industry stood at INR 78,000 crores (USD 12 billion), with an annualized growth rate of 76.6% during the past four years.
  • Green Bond: A Socially Responsible Investment (SRI) Instrument 

    Source: Pradiptarathi Panda
    Date Submitted: 17 Feb 2018
    Views: 300
    Downloads: 17
    Green Bond attracts a specific group of investors and helps issuers as well as to the economy at large. This innovative financial instrument was issued in the year 2008 by World Bank with the request of investors. Now this instrument is gaining popularity world-wide. So far World Bank has made 130 issues in 18 currencies in totaling of US$5.7 billion.  Followed by World Bank, there are several institutions, which are issuing this instrument. The present study aims to state the genesis of Green Bond, its inception and the road ahead so far with current statistics
  • Dynamic regime switching behaviour  between cash and futures market:  A case of interest rates in India 

    Source: Pradiptarathi Panda, Prof. Malabika Deo, Jyothi Chitteni
    Date Submitted: 17 Feb 2018
    Views: 210
    Downloads: 7
    Abstract. This study examines the Markov dynamic regime switching behaviour between cash and futures market in respect to interest rate in India. The study uses daily data of volumes, weighted average price, weighted average yield for cash market and total values, open interest, settlement price from 21st January 2014 to 30th October 2014. We a contract i.e. 883GS2023 of NSE has been used for our analysis. All data are sourced from Clearing Corporation of India Ltd. (CCIL) and National Stock Exchange (NSE). We have run regime switching regression to capture the switching behaviour in bull as well as bear state of cash to future and future to cash in six different equations. This model also captures the estimated probability and estimated duration to continue in bull and bear state and does not require to test stationarity or conversion of data into any normalised form.  We find switching behaviour in both cash is regime switching the future as well as future is regime switching the cash market and the estimated probability differs from 70% to 97% in different cases. The estimated duration to continue in an existing state has also been captured in 6 different equations. 
  • Interest Rate: Futures and Cash Market Spill-over’s in India 

    Source: Hrudaranjan Sahoo, Pradiptarathi Panda
    Date Submitted: 17 Feb 2018
    Views: 221
    Downloads: 9
    The present study analyses the spill-over’s effect between the interest rate cash and futures market in India. We use daily data of volumes, weighted average price, weighted average yield to represent cash market and number of contracts traded, values, open interest, settlement price to represent futures market from 4th August 2014 to 31st December 2015 with 337 (trading days) number of observations. We consider a single instrument (i.e. 08.40 GS 2024) which is most liquid, active and have contracts for a longer time period. All data are sourced from Clearing Corporation of India Ltd. (CCIL) and National Stock Exchange (NSE). We first presents descriptive statistics followed by stationarity test, Correlation, Regression, Granger Causality test and ARMA (1, 1), GARCH (1, 1) spill-over’s model. The study finds cash market price is leading the futures market but the future settlement price has impact on the yield of the underlying security. 
  • Investing in the U.S. Corporate Bond Market From an Asian Perspective

    Source: Michele Leung
    Date Submitted: 06 Feb 2018
    Views: 358
    Downloads: 0
    As Asian market participants have become more aware of the importance of portfolio diversification, they have been paying more attention to the U.S. corporate bond market. 
  • Rising Rate Implications for Japanese Investors

    Source: Michele Leung,
    Date Submitted: 29 Jan 2018
    Views: 311
    Downloads: 0
    The outperformance of U.S. Treasuries this year reversed the previous trend, wherein Japanese sovereign bonds delivered higher risk-adjusted return in three- and five-year timeframes due to the better returns and lower volatility.
  • IMF on China: A Downturn is Inevitable

    Source: Jonathan Rochford
    Date Submitted: 25 Jan 2018
    Views: 1554
    Downloads: 101
    A recent working paper from the IMF titled “Credit Booms – Is China Different?” provides a good summary of many of the key issues facing China’s economy. Rapid credit growth since the global financial crisis is record setting for both its total expansion and its duration. Credit is being poorly used with the most inefficient sectors and firms grabbing large shares of new debt. Banks have seen rapid growth in their size and complexity and when combined with a heavy reliance on short term funding this creates a major risk of a liquidity crisis.
    Whilst using diplomatic language the working paper makes clear that China may be able to continue its current trajectory for the medium term but in the long term a downturn, likely accompanied by a banking crisis is inevitable. This paper reviews the key points from the IMF paper and adds commentary on issues that the IMF paper omits.
  • Sukuk Market in 2017: Year in Review

    Source: Michele Leung
    Date Submitted: 22 Jan 2018
    Views: 37
    Downloads: 0
    In 2017, the USD sukuk market expanded at its quickest pace in the past five years.
  • Asian Fixed Income: 2017 Pan Asia Report Card

    Source: Michele Leung
    Date Submitted: 16 Jan 2018
    Views: 287
    Downloads: 0
    The S&P Pan Asia Bond Index, which seeks to track local currency bonds in 10 countries and is calculated in USD, reversed its loss in 2016 and delivered a total return of 7.86% in 2017. Meanwhile, its yield-to-maturity widened 123 bps to 4.64% YTD. The S&P Pan Asia Corporate Bond Indexoutperformed the S&P Pan Asia Government Bond Index and gained 8.30% over the same period. The size of Asia’s local currency bond markets, as measured by the S&P Pan Asia Bond Index, continued to expand and grew 17% to reach USD 12.1 trillion in 2017.
  • Asian Fixed Income: Indonesian Sovereign Bonds Were the Big Winners in 2017

    Source: Michele Leung
    Date Submitted: 11 Jan 2018
    Views: 936
    Downloads: 0
    With the growing appetite for emerging market debt and in the hunt for better yields, Indonesian sovereign bonds have been popular this year.
  • Indian Banks: 1HFY18 Review and 2018 Outlook

    Source: Ang Ben You, David Marshall
    Date Submitted: 10 Jan 2018
    Views: 489
    Downloads: 0
    • Indian banks reported lower annualized aggregate profitability in 1HFY18 due to weaker net interest revenues and higher provisions related to RBI's two lists of accounts which are slated for insolvency resolution.
    • The government's INR 2.1 tn recapitalization package is a game changer and has largely removed the capital uncertainty banks have been facing.
    • For banks under our coverage, our rough calculation reveals a capital requirement that is ~64% of the total amount pledged (INR 2.1 tn) by the government under our scenario analysis which we think is reasonable but not especially harsh.
    • Asset quality is already showing signs of stabilization and improvement but the recapitalization plan should also help support this picture into 2018 as banks find greater impetus to take haircuts and resolve NPAs on their books.
    • The expectation of a substantial pick up in credit growth due to the capital pledge is logical but we remain skeptical as the plan will be spread over two years and risk aversion will also likely  take some time to abate.
    • Removing capital concerns will help with bank valuations and in tandem with the recently introduced "Alternative Mechanism" (AM), should help with banking consolidation.
    • IFRS 9 implementation should also be easier to swallow with with more capital and a phased implementation of the CET 1 impact. 
  • Asian High Yield Outlook: 8 Themes for 2018

    Source: Sandra Chow, CFA, Cheong Yin Chin, CFA, Lakshmanan R
    Date Submitted: 26 Dec 2017
    Views: 512
    Downloads: 0
    • Asian high yield is too expensive" lament many investors we meet. We agree. We propose a more defensive strategy next year. Current Asian high yield spreads offer little compensation for the incremental credit risk compared to investment grade, or to US high yield. We suggest a 'barbell' approach in terms of credit quality: combining a core portfolio of defensive names with a few higher-beta credits to boost returns. 
    • Credit quality is generally improving or stable among the names we cover.  But this does not justify the extent of the Asian high yield rally. Technical factors - the imbalance between demand (large inflows into emerging markets and the fabled 'Chinese onshore bid') and supply (at record levels, but still not enough to dent demand) - have been the key reason.  As supply risk increases, we are concerned that the balance will tip away from the market's favour. 
    • We highlight 8 themes that could drive the Asian high yield markets next year.  These include: 1) the effect of China's regulators and China's domestic bond markets on offshore bond supply; 2) LGFV issuance and maturity walls; 3) China's capacity cuts and their impact on commodity prices; 4) Asian high yield bond supply risk; 5) China's property market slowdown; 6) few distressed opportunities; 7) the reach for yield into frontier markets and riskier credits; 8) Fed surprise risk.  
  • Asian Fixed Income: China Was The Worst-Performing Country In The Pan Asian Bond Market

    Source: Michele Leung
    Date Submitted: 12 Dec 2017
    Views: 362
    Downloads: 0
    China’s lackluster performance has made it the worst-performing country in the Pan Asian bond market this year. 
  • An In-Depth Look at the Dow Jones Sukuk Indices

    Source: Michele Leung, James "J.R." Rieger
    Date Submitted: 30 Nov 2017
    Views: 258
    Downloads: 4
    Market participant appetite for sukuk remains, and there is a tendency to favor higher-yielding and longer-tenor sukuk.
  • Predicting Credit Rating Changes Conditional on Economic Strength

    Source: Julia Sawici, Jun Zhou, Yonggan Zhao
    Date Submitted: 17 Nov 2017
    Views: 236
    Downloads: 0
    Predicting Credit Rating Changes Conditional on Economic Strength
    Julia Sawicki, Jun Zhou and Yonggan Zhao
    Extended Abstract 
    This paper addresses a fundamental credit analysis question: what is the probability that a firm's rating will be upgraded, downgraded or unchanged for a specific rating cohort and state of the economy? We develop a new structural model for predicting credit rating changes using both financial accounting variables and macroeconomic indicators. Economic strength (contraction / expansion) is predicted with a set of systematic factors in a Markov regime-switching model. Measures of firm-specific business and financial risk are used in a multinomial logistic regression model to estimate transition probabilities (upgrade, stay or downgrade) conditional on the predicted state of the economy. Tests of statistical differences in probabilities indicate that the likelihood of upgrade and downgrade are asymmetric across regimes; general probability of a downgrade during a recession is nearly twice the expansion downgrade probability; up-grade probabilities are relatively stable. 
    In addition to developing a sophisticated predictive model, our work sheds light on a major (and poorly-understood) concern related to broad economic ratings' determinants: the pro-cyclical nature of credit ratings. Ratings that are particularly harsh (lenient) in weak (strong) economic conditions can exacerbate tightening (loosening) of credit, contributing to volatility and uncertainty in financial markets. This potential destabilizing impact of ratings changes draws considerable attention of regulators and policy makers. Our estimates of upgrade and downgrade probabilities in expansions and recessions provide insight at the policy level and a valuable analytical tool for investors. 
    Our model is an important contribution to the literature. Research devoted to identifying the determinants of ratings has focussed primarily on entity-specific measures of operating performance and financial condition, such as profitability and leverage. While link between credit risk and macro-economic is clear (and empirical evidence points to the potential to improve ratings predictions by modelling systematic conditions), empirical work has proved wanting. The standard approach using linear regression analysis is not appropriate for predicting changes in credit ratings.[1] Our model captures macroeconomic states with regime-switching model that offers two important advantages: results are not specification dependent and the model is forward-looking in that ratings transitions are predicted contingent on a prediction about the state of the economy. Forward-looking investment decisions are based on future credit quality, including estimates of how likely a firm's rating will be upgraded or downgraded under various economic states. The ordered logistic regression analysis with the economic strength conducted in this paper provides this information. 
    Tests of statistical differences indicate that the transition probabilities in contractions are different from those in expansions. The nature of these differences largely depends upon whether the issue is investment or non-investment grade. In general, it is much easier for junk bonds to be upgraded than investment grade bonds, regardless of economic state. This is not the case with downgrades. Notwithstanding CCC and below, investment and non-investment grades share similar downgrade probabilities in expansion (ranging from 2 to 4 percent). The probability of being downgraded jumps for non-investment grade issues in contractions to a range of 5 to 11 percent. Comparing transition probabilities between states and within rating we find that investment grade issues tend to exhibit similar upgrade probabilities in both expansion and contraction, whereas downgrade probabilities are somewhat higher during contractions than during expansions. Regarding non-investment grade issues, it seems that the 'dogs' get a boost during expansions with a much higher probability of being upgraded. The differences become very pronounced as the rating falls (for, example CCC contraction upgrade probability of 3.8 percent triples to 14 percent in an expansion). The chance of a downgrade during contractions is much higher than in expansions, almost doubling in many cases. 
    While these tests provide strong evidence consistent with a procyclical nature of rating changes, an important question remains. Does the evidence point to harsher (more lenient) ratings criteria applied during weak (strong) economic conditions? Or is it indicative of permanent, rather than temporary, changes in firm-level creditworthiness? To develop some insight into this question, average changes in firm-level credit risk measures are calculated conditional on economic strength.  Preliminary analysis points towards evidence of distinct ratings criteria changes across regimes, consistent with procyclicality. This is an empirical question and the subject of further inquiry.
    By the very nature of the subjectivity involved in analyst-driven, forward-looking ratings, identifying the determinants of credit ratings will never be an exact science. However, our understanding credit ratings, in particular the factors that prompt rating changes, is vital to the well-functioning of capital markets. Our results provide insight into the stability of credit ratings. CRA publications and empirical evidence point to ratings that seek a balance between some continuum of stability (immunity from cycles) and accuracy (changing in response to changes in both firm and macroeconomic conditions). Can we be more precise in our understanding of where they might lie on a through-the-cycle and point-in-time continuum? In particular, to what extent does rating' determination reflect changes reflect the state of the maro-economy? This paper is a step towards answers to these questions which are of critical importance to financial markets, including investors, portfolio managers, corporations and regulators.  
    [1] Empirical modelling is particularly challenging because the parameters or functional forms are unstable, making it difficult to capture the complex nature of the interaction between the state of the economy and credit risk.  Figlewski et al (2013) demonstrate that results are extremely sensitive to model specification, choice of macro-variables, averages versus lagged versus contemporaneous, and time period. Estimating various specifications and they find
    that significance and macro-variable coefficient signs depend upon which variables are included in the model.
  • Green Bond Market: October 2017

    Source: Dennis Badlyans
    Date Submitted: 15 Nov 2017
    Views: 447
    Downloads: 0
    In October 2017, nearly USD 10 billion of green bonds were issued, bringing the total to USD 94 billion YTD.
  • China Banks 3Q17: Convertible Boost to CET1

    Source: Matthew Phan, CFA
    Date Submitted: 14 Nov 2017
    Views: 355
    Downloads: 0
    • The major Chinese banks generally delivered stronger earnings in 3Q17 with profits up YoY across all banks except for Citic where they were flat. 
    • Net interest margins ticked up QoQ across banks but the drivers are different for the big four versus BoCom and the joint stock banks. For the big four, the NIM levels are higher than the previous year as lending rates especially on interbank assets have picked up. BoCom and the joint stock banks also saw NIM tick up QoQ in 3Q - due to a run off of deposits and a run-up in loan deposit ratios - but levels are still 20-40 bp lower than the previous year. 
    • Gross NPLs and ratios have mostly stabilized, with the exception of Shanghai Pudong where loan quality worsened further in 3Q. Investment receivables, usually shadow loans, declined QoQ across the joint stock banks, though the books are still very large. Provision costs have moderated but the run rate of credit costs is still quite high and banks are rebuilding provision coverage. 
    • Loan growth has slowed slightly among the big banks, due to an easing of mortgage loan growth, while at joint stock banks the loan growth is generally faster and trends are more mixed. 
    • Liquidity remains stretched at BoCom and the joint stock banks where loan to deposit ratios, even when excluding shadow loans, have shot up to 90% or higher, from mostly below 80%, over the last two and a half years. 
    • CET1 ratios are stable and relatively strong at the big banks and Merchants, but some joint stock banks are under pressure and have used convertible bonds or private placements to raise CET1 capital.  For example, Everbright Bank lifted its CET1 ratio slightly by issuing convertible bonds (not the same as AT1 prefs) which are partly accounted for as equity, with this portion also counting as regulatory CET1 capital. Minsheng and Ping An respectively plan RMB 50 bn and RMB 26 bn of similar convertible bond issuance. Separately Shanghai Pudong also improved CET1 via private placement of new shares.  These examples reflect banks finding creative solutions to capital raising while they remain restricted from public equity capital raising as their price/book multiples are still under 1x. 
  • Japanese Banks: BOJ's Take on Financial Stability

    Source: David Marshall
    Date Submitted: 30 Oct 2017
    Views: 549
    Downloads: 0
    • In its latest financial stability report the BOJ highlights the unusually low profitability of Japanese banks and expresses concerns about the soundness of some lenders and risks to the efficiency of credit allocation
    • Too many lenders are fighting for a shrinking market as the population and the number of firms declines
    • Nevertheless, domestic lending has been growing at around 3%, more strongly at the regional banks than the majors, led by real estate lending to SMEs
    • Overseas funding costs have risen which has led Japanese banks to slow their growth in overseas lending and securities investment to focus more on risk and returns
    • Domestically the banks have shed yen bonds as the BOJ has bought JGBs but holdings by the major banks have picked up recently and all the banks have increased holdings of investment trusts in pursuit of higher returns  
    • As domestic loan growth has exceeded GDP growth, Japan's credit/GDP ratio has been rising, but this comes after a declining trend that has lasted more than 20 years. Before its bubble burst, Japan's ratio peaked at something close to the level that China's corporate debt/GDP is now reaching
    • The BOJ sees Japan's banking system as basically stable, but facing profitability challenges from a shrinking customer base, low lending rates, inefficiency and limited income diversification.
  • SPIVA® Australia Mid-Year 2017 Scorecard 

    Source: Priscilla Luk
    Date Submitted: 25 Oct 2017
    Views: 625
    Downloads: 5
    The SPIVA Australia Scorecard reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons. In this scorecard, we evaluated returns of more than 731 Australian equity funds (large, mid, and small cap, as well as A-REIT), 363 international equity funds, and 83 Australian bond funds. 
  • Green Bond Market: September 2017

    Source: Dennis Badlyans
    Date Submitted: 11 Oct 2017
    Views: 5781
    Downloads: 0
    In the first three quarters of 2017, green bond issuance reached USD 83 billion, nearing the issuance reported by the Climate Bond Initiative for full-year 2016 (see Exhibit 1).  France accounted for 18% (USD 14.8 billion) of the issuance, driven primarily by the USD 7.6 billion sovereign bond issued by the country in January. Commercial banks issued 44% of the USD 12.4 billion of capital raised in China to fund green projects.  U.S. municipals continue to account for about half of the U.S. issuance YTD, however asset-backed securities continue to increase market share.  Fannie Mae, a newcomer in 2017, issued its fourth green ABS in August, bringing its YTD total to USD 1.8 billion of USD 11.4 billion issued in the U.S. market through the end of Q3 17 (see Exhibit 2).
  • The Anatomy of the Gold Crash of April 12-15, 2013 from a Liquidity Perspective – An Application of Donier and Bouchaud’s Measure of Illiquidity

    Source: Daniel Ceferino D. Camagay
    Date Submitted: 26 Sep 2017
    Views: 1194
    Downloads: 12
    Gold crash of April 12-15, 2013 as seen from a liquidity perspective using Donier and Bouchard's measure of illiquidity
  • China: $ Bond - Why Issue and Where Should It Price? 

    Source: Richard Briggs, Matthew Phan, CFA
    Date Submitted: 10 Sep 2017
    Views: 1298
    Downloads: 0
    • China is reported to be readying a dollar sovereign issue. We expect it to price at the tightest end of the EM external sovereign index, inside highly rated sovereigns including Korea, Hong Kong and Israel. This is thanks to what we expect will be a strong technical bid from Chinese banks.
    • China doesn't have to issue external debt which raises questions about why the sovereign is issuing at this stage. 
    • Credit growth has slowed but remains well above nominal GDP, and there are long term questions about the viability of the investments toward which credit is going. That has left the Chinese economy very imbalanced, but those imbalances are largely domestic. Foreign currency debt remains low, both at a sovereign and whole economy level.
    • China's still extremely high reserves amount to close to double the stock of external debt, both public and private and close to 19 months of imports of goods and services. Reserve drain has also been halted as outflows have been curbed sharply in 2017.
  • Banking Bad: The China and India Episode

    Source: Jonathan Rochford
    Date Submitted: 31 Aug 2017
    Views: 376
    Downloads: 18
    China and India are both getting excited about creating bad banks. Yet neither has an answer to the key question “who is going to take the loss”?
  • Asian Fixed Income: Two Growth Segments in China's Bond Market

    Source: Michele Leung
    Date Submitted: 30 Aug 2017
    Views: 376
    Downloads: 0
    China’s bond market continued to expand in 2017.  The local currency bond market, as tracked by the S&P China Bond Index, grew over 19% in the past year.  As of June 30, 2017, the S&P China Bond Index tracked 9,342 bonds with a market value of CNY 51 billion.  Two segments that recorded robust growth were the provincial and corporate bonds.
  • AAM-CAMRI-CFA Institute Prize - The Bond Pricing Implications of Rating-Based Capital Requirements      

    Source: Scott Murray, Stanislava Nikolova
    Date Submitted: 29 Aug 2017
    Views: 43
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
  • AAM-CAMRI-CFA Institute Prize - Rise of Factor Investing: Asset Prices, Informational Efficiency, and Security Design    

    Source: Lin William Cong, Douglas Xu
    Date Submitted: 29 Aug 2017
    Views: 317
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
  • AAM-CAMRI-CFA Institute Prize - Term Structure of Interest Rates with Short-Run and Long-Run Risks    

    Source: Olesya V. Grishchenko, Zhaogang Song, Hao Zhou
    Date Submitted: 29 Aug 2017
    Views: 78
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
  • For China, this Time is Different

    Source: Jonathan Rochford CFA
    Date Submitted: 24 Aug 2017
    Views: 370
    Downloads: 13
    In 2008 China announced a massive stimulus package that helped its economy and the global economy weather the storm. But nearly ten years on, the situation is very different and China could shift from being a big contributor to global growth to an anchor slowing down the global economy.
  • EM Weekly: Beta Sell-Off, Asia Least Hard Hit

    Source: Richard Briggs
    Date Submitted: 13 Aug 2017
    Views: 388
    Downloads: 5
    • Risk assets took a bump last week largely due to global, rather than EM, factors. DM underperformed EM in excess return terms. In IG, EM corporates generated excess returns of minus 0.38% versus minus 0.54% on DM. In HY corporates a similar story was true with excess returns of minus 0.44% versus minus 1.12% on DM.  
    • One of the drivers of the risk off tone last week was the war of words between US President Donald Trump and North Korea's leader Kim Jong-un. That hit the Korean won hardest, it fell 1.64% versus the dollar over the week. Asian currencies were generally weaker last week, with the exception of the Chinese renminbi which strengthened by 0.98%. But in hard currency, the opposite was true with Korean names and sovereign debt generally outperforming IG counterparts.  
    • In fact the hardest hit last week in the hard currency corporate and sovereign indices were the LatAm and sub-Saharan African credits which are usually caught up in any beta sell off regardless of the driver. Asian names, which tend to be tighter, higher rated and more defensive were the strongest performing last week in that risk-off environment, including Korea.
    • Notable outliers to those broad moves last week included Teva which continued to sell off for a second week with very high trade volumes persisting after weaker 2Q17 results in the week before last. Teva was down by 1.62% in excess return terms. Venezuela and PDVSA were also among the bottom of the high yield indices' constituents for performance last week and continued to be very volatile, falling on average by 3.32% and 3.69% respectively in price terms last week. Kenya was at the stronger end of the sovereign index last week with excess returns of 0.71%, after relief that last week's elections didn't turn to violence, albeit with the result still being disputed and strikes planned on Monday.
    • Issuance slowed to a trickle last week with $2.5 bn priced, of which $1.7 bn was rated high yield. The only sovereign new issue was Gabon (B3/B+) which priced a $200 mn tap of its 6.95% 2025 notes. There are several other sovereign new issues being rumoured as coming in the second half of August or early Autumn including Bahrain (euros), $2 bn from Oman and $3 bn from Nigeria.
  • What is driving the corporate bond market development in Asia?

    Source: Oskar Kowalewski, Paweł Pisany
    Date Submitted: 05 Aug 2017
    Views: 1487
    Downloads: 23
    We investigate the development of corporate bond markets in 10 Asian countries from 1995 to 2014. Using panel data on the market size and total issue of bonds by financial and non-financial companies, we confirm that macroeconomic and institutional factors are related to the depth of the market. In addition, we show that the issuance of bonds is also determined by other factors that strongly depend on the issuer type. We show that creditor rights and institutional quality are important in explaining the issuance of bonds by financial institutions. Furthermore, we determine a strong positive association between the level of domestic credit and the market and issue size of corporate bonds. In our opinion, the results indicate that there is a positive relationship between the development of the corporate bond market and the banking sector. These findings indicate that increased demand for bank loans induced the issuance of bonds by financial institutions which, in turn, may have led to the development of corporate bond markets in Asia.
  • China's Green Bond Markets

    Source: Tianyin Cheng
    Date Submitted: 26 Jul 2017
    Views: 1965
    Downloads: 0
    China has emerged as a global leader in green finance, especially green bonds, and from 2014 to 2016, it was the fastest-growing market in the region for sustainable investing.  The total amount of green-labeled bond issuances amounted to USD 93.4 billion at the end of 2016 and reflected strong China-based issuances (40% of labeled green bond issuance in 2016 was from China) and momentum from the Paris Agreement.
  • Fixed-Income Weekly Report, 10th-14th July

    Source: Thanh Truong; Son Nguyen, Thien Viet Securities JSC
    Date Submitted: 19 Jul 2017
    Views: 311
    Downloads: 14

    The market saw the dramatic decline in bond yield of all tenors following rate cut by State Bank of Vietnam (SBV,the central bank). It is amplified by the abundance of VND and low money market (MM) rate. Although bond yields overall were low level, Vietnam State Treasury (VST), the big player in primary market, reduced amount of bond offering when he did not rush in new issuance, in our view stated in last week report “Weekly Report_03072017_07072017”. 

  • China Property Trip Notes May 2017: Tug-of-War

    Source: Cheong Yin Chin, CFA, Luther Chai
    Date Submitted: 10 Jul 2017
    Views: 191
    Downloads: 0
    • We visited 4 'hot' cities last month, namely, Wuhan, Hefei, Nanjing and Shanghai. These cities are classified as 'hot' property markets by the Chinese government. Why? The average price of a newly constructed homes jumped ~31.4%, ~48.1%, ~51.4% and ~56.0% from January 2015 to April 2017 in Wuhan, Hefei, Nanjing and Shanghai, respectively. The respective local governments tried to rein the runaway home prices by implementing tighter housing measures. However, our recent trip indicates that these restrictive measures have not been very effective. The sales volume did decline after the introduction of tighter measures, but the average home prices remained relatively resilient.
    • Most of the projects in Shanghai (Tier-1 city) and Nanjing (upper Tier-2 city) were able to achieve high gross profit margins ("GPMs") of ~50% or above, while those in Wuhan (mid Tier-2 city) were in excess of 30%. Projects in Hefei were also at a decent GPM of above 25%, despite being a lower Tier-2 city. Given the decent to high GPMs, we can understand why many developers want to operate in these 4 cities.
    • The Chinese developers and the local governments seem to be engaged in a game of 'tug-of-war'. The local governments are delaying or suspending fresh pre-sales permits for projects with high average selling prices ("ASPs"). On the other hand, Chinese developers are not willing to lower their ASPs to meet the price caps imposed by the local governments. Most local governments' revenues are dependent on business/sales tax on property transactions, land sales, and income and land appreciation taxes from the developers. Developers are dependent on the sale of properties to generate cash flow to fund their operations. Who will cave in eventually? We think it depends which party has deeper pockets.
    • The supply-demand mismatch has led to an inventory shortage especially in the larger cities. On one hand, developers want to delay the launches of their projects in hopes of higher ASPs. On the other hand, home buyers are bringing forward the purchases in view that ASPs may increase after restrictions are lifted and borrowing might become more expensive in the future. Aggravated by the influx of migrants, entire phases of projects are sold out in a matter of days. Please refer to the body of this report for the common themes across the property markets for all 4 cities.
  • Mid-Year Research Update 2017: Active managers performance, factor-driven, ESG, and fixed income indices

    Source: Craig J. Lazzara, Priscilla Luk, Sunjiv Mainie, Charles Mounts, Aye M. Soe
    Date Submitted: 07 Jul 2017
    Views: 1464
    Downloads: 34
    Published in May 2017, this research reveals most active managers fail most of the time, at least if we define failure as underperformance of an appropriate passive benchmark. Success, when it does occur, tends not to persist.
  • PBOC Monthly: Onshore Corporate Bonds - Dead or Alive?

    Source: Matthew Phan, CFA
    Date Submitted: 22 Jun 2017
    Views: 1803
    Downloads: 26
    • Local government bond issuance has roared back to life but corporate bond financing saw the largest monthly net decline since at least 2011. Other non-bank financing was also weak in May, with outstanding entrusted loans and undiscounted bills falling on a net basis. 
    • Bank lending rose by 12.8% YoY and was the main driver of social financing growth which grew 13.0%. Household loan growth peaked in April and decelerated slightly to 24.3% YoY in May. There are multiple reports of tighter controls on the housing market, though there is not yet specific data on mortgage lending for May. Corporate loan growth picked up further to 8.5%. 
    • The weak corporate bond market is a major risk for economic growth and for corporate credit quality.  The PBOC could inject liquidity to bring down short term rates, which should reopen the bond market, but this means shifting the focus away from 'deleveraging' and might also risk renewed concerns over capital outflows. China has enjoyed relative external stability this year but this could change if the USD strengthens as and when US inflation and rates pick up or as the Fed commences plans to reduce its balance sheet. 
    • Refinancing costs have risen by over 100 bp on short dated commercial paper issued in 2015-16 when yields were low. They have risen by less on longer-dated bonds issued prior to 2015. There is some RMB 1.4 bn of commercial paper due to mature in the remaining months of 2017, with the largest issuance from the manufacturing, utilities and mining sectors.
    • Issuers of longer-dated bonds might not face a big increase in refinancing costs but could instead face the risk of being entirely unable to issue. The real estate sector in particular has a sizable amount of bonds coming due or turning putable in the remaining months of 2017 but gross issuance has been negligible in the last few months due to regulatory restrictions. Other sectors with large amounts of issuance coming due include manufacturing, conglomerates, construction and mining. 
  • 2016: A Quantum Leap for Indian Corporate Bond Market

    Source: Shagun Thukral, CFA
    Date Submitted: 20 Jun 2017
    Views: 3428
    Downloads: 52
    This paper was published in the Research Bulletin, The Institute of Cost Accountants of India, Vol. 43, No.I, April 2017 issue.  The paper seeks to establish 2016 as a turning point in the development of the corporate bond market in India while identifying the factors, using the RBI's 7i Framework, that have contributed to this push and where there remains room for further improvement.
  • Indonesian Capital Market Development and Challenges

    Source: Kahlil Rowter
    Date Submitted: 04 Jun 2017
    Views: 486
    Downloads: 16
    This article elucidates development in the Indonesian capital market until recently. Included are developments in the equity and bond markets, why they are still at a nascent stage in comparison with other South East Asian countries.
  • Presentation deck on Key Sustainable & Green Finance Trends during ARX ESG forum  April 2017

    Source: Martina Macpherson
    Date Submitted: 04 May 2017
    Views: 2512
    Downloads: 45
    CFA Institute Asia-Pacific Research Exchange ESG series kicked-start in Hong Kong - Green Finance Forum
    On 27 April, CFA Institute co-hosted a green finance forum with the Hong Kong Society of Financial Analysts and the Hong Kong Financial Services Development Council (FSDC), a high-level government advisory body that conducts policy research and industry surveys for the formulation of proposals to the Government and regulators.  This is the second green finance forum organized by CFA Institute in Hong Kong, ARX’s second o2o event as well as ARX’s ESG Track maiden event. The forum attracted 140 attendees including CFA members, industry practitioners, think tanks, environmental and other NGOs.
    The evening began with a keynote speech delivered by Martina Macpherson, S&P Dow Jones Indices Head of Sustainability Indices on an overview of green finance and ESG trends. Up next Mary Leung, Head of Standards and Advocacy for CFA Institute Asia Pacific led a panel discussion featuring Martina and ESG experts from PwC, HSBC and AXA Investment Managers focusing on the intrinsic value of ESG. 

    The PowerPoint Presentation of Martina's keynote speech can be downloaded in the attachment.

    Overall the event was a great success with very positive feedbacks from both participants and panelists.  The next stop for the CFA Institute Asia-Pacific Research Exchange ESG Series will take place in Singapore on the 11th May 2017.
  • Bond market boom? Hong Kong's latest trading link set to spur $10 trillion market

    Date Submitted: 24 Mar 2017
    Views: 689
    Downloads: 0
    WiC's latest review of the key business stories from China
  • Regional Settlement Infrastructure and Currency Internationalization: The Case of Asia and the Renminbi

    Source: Rhee, Changyong, Sumulong, Lea
    Date Submitted: 27 Feb 2017
    Views: 372
    Downloads: 7
    Rhee, Changyong; Sumulong, Lea | February 2014
  • Asia Bond Monitor - March 2015

    Source: Asian Development Bank
    Date Submitted: 09 Feb 2017
    Views: 507
    Downloads: 7
    Asian Development Bank | March 2015
  • Facilitating Foreign Exchange Risk Management for Bond Investments in ASEAN+3

    Source: Asian Development Bank
    Date Submitted: 06 Feb 2017
    Views: 647
    Downloads: 5
    Asian Development Bank | August 2015
  • Local Currency Bonds and Infrastructure Finance in ASEAN+3

    Source: Asian Development Bank
    Date Submitted: 06 Feb 2017
    Views: 532
    Downloads: 5
    Asian Development Bank | July 2015
  • ASIA BOND MONITOR: March 2016

    Source: Asian Development Bank
    Date Submitted: 02 Feb 2017
    Views: 1938
    Downloads: 17
    Asian Development Bank | March 2016
  • Chinese Local Government Bonds Offer Diversification in a World of Correlations

    Source: QIC
    Date Submitted: 28 Dec 2016
    Views: 2255
    Downloads: 0
    China watchers are hard to please. When the country was roaring with double-digit growth, they took issue with its economic model. Too much fixed capital investment, too many wasted resources, not enough attention to quality and on it went.
  • Corporate Credits Come to Fore in Liquidity-Challenged World

    Source: Stephen Holmes, Katrina King
    Date Submitted: 28 Dec 2016
    Views: 588
    Downloads: 0
    A great deal of investment industry commentary these days reads like a tale of woe. High on the list of complaints is overbearing regulation that has drastically reduced liquidity and made it harder and costlier to trade. There is no force majeure clause to get investment professionals off the hook. Institutional clients and those they serve – members of superannuation funds, retirement plans and savers – continue to require good returns and we believe pockets of opportunity do exist. Corporate credits are a prime example, in our view. The greater liquidity risk is being compensated by a higher premium assigned to corporate bond yields. For investors that don’t require instant liquidity or are unencumbered by mark-to-market pressure, the current higher premium demanded for “illiquidity risk” presents an opportunity to experience a form of financial schadenfreude – to gain satisfaction from others’ misfortune. There is an important caveat to keep in mind. Credit-investing, even in quality names, is a far cry from set-and-forget investing. A blasé attitude is the antithesis of successful credit investing. Watchful eyes – active monitoring – must be ever present.

    Source: Douglas Cumming, Grant Fleming, Frank Liu
    Date Submitted: 18 Nov 2016
    Views: 364
    Downloads: 5
    Buying private debt on the secondary market delivers higher returns than buying-and-holding a primary issuance. Excess returns are positively related to volatility and to credit risk but are not influenced by market liquidity.
  • AFBC-Information asymmetry and credit rating? A quasi-natural experiment from China.

    Source: Xiaolu Hu, Jing Shi, Jing Shi
    Date Submitted: 16 Nov 2016
    Views: 256
    Downloads: 3
    This paper examines how the incumbent issuer-pay credit rating agencies in China change their ratings’ strategy as a response to the entry of an independent rating agency, China Credit Rating (CCR), which utilizes a combination of public utility and investor-pay business models. By investigating the rating inflation change after CCR’s entrant using difference in difference method and market reaction of the rating change announcements issued by the incumbents before and after CCR’s coverage initiation by event study, we find that the incumbent issuer-pay rating agencies significantly change their rating behaviour, which reflect the reduction of information asymmetry of the bond market. This result adds empirical evidence on literature documenting the influence of introducing a new rating agency with alternative business models other than issuer-pay rating agencies. We further show that the scopes of information asymmetry reduction are different associated with different information scenarios and reputation of the rating assigners.
  • In-House Investment Management: Making and Implementing the Decision

    Source: Geoff Warren, David Gallagher, Tim Gapes
    Date Submitted: 07 Nov 2016
    Views: 522
    Downloads: 2
    This paper reports on interviews with executives from the Australian superannuation industry around in-sourcing of asset management. A framework is proposed that asset owners can use for making and implementing decisions to manage in-house.
  • The Fixed-Income Challenge: The Monetary Policy Pit

    Source: Jason Voss, CFA
    Date Submitted: 14 Oct 2016
    Views: 753
    Downloads: 0
    This is a blog posted on CFA Institute's website on 15 September 2016.
  • Review of factors constraining the development of Indian corporate bond markets

    Source: Shagun Thukral, CFA, Sharada Shridhar, Dr. Medha Joshi
    Date Submitted: 12 Oct 2016
    Views: 983
    Downloads: 14
    This paper is a literature review of papers on the development of corporate bond markets in India. It was published by Emerald in the Qualitative Research in Financial Markets journal in November 2015.
  • Event Based Analysis of the Corporate Bond Market in India Through a 7i Framework

    Source: Shagun Thukral, CFA
    Date Submitted: 05 Oct 2016
    Views: 4152
    Downloads: 83
    This paper was published in the Research Bulletin, The Institute of Cost Accountants of India, Vol. 42, No.I, April 2016 issue. The paper seeks to establish through the 7i Framework of the RBI, the strides the corporate bond market in India has already made in this regard and the possible areas that still need a push. The researchers have relied on the published news reports pertaining to the corporate bond markets in India to collect data on the issuances for the calendar year 2015 as well as other material information concerning the markets.
  • AFBC - The Value Relevance of Regulatory Capital Components

    Source: Martien Lubberink, Roger Willett
    Date Submitted: 21 Sep 2016
    Views: 511
    Downloads: 12
    Our paper examines how investors value regulatory bank capital components, e,g. Tier 1 Hybrids, deduction of Goodwill, etc.
  • AFBC - Learning and Contractual Evolution: The Case of Leveraged Loans

    Source: Edison Yu, Mitchell Berlin, Gregory Nini
    Date Submitted: 21 Sep 2016
    Views: 273
    Downloads: 6
    A working paper to be presented at the 29th Australian Finance and Banking Conference
  • FTSE Russell China Bond Research Report - June

    Source: FTSE Russell
    Date Submitted: 18 Aug 2016
    Views: 1062
    Downloads: 0
    FTSE Russell's China Fixed Income Research Paper on the market overview, development of the onshore bond market, regulatory updates, onshore/offshore convergence and other related topics.
  • Effect of Debt Financing on Corporate Financial Performance: Evidence from Textile Firms in Pakistan

    Source: Sana Tauseef, Dr. Heman Das Lohano, Sara Ashfaq
    Date Submitted: 10 Aug 2016
    Views: 732
    Downloads: 12
    Original research by author based on statistical analysis
  • The end of A-share DaXin Strategy and its Implication to China Bond Investment

    Source: WeiYong Gu, CFA
    Date Submitted: 17 Jul 2016
    Views: 267
    Downloads: 3
    This is a research report published by UCON Investments in July 2015.
  • How to understand the challenges facing China Bond Investors

    Source: WeiYong Gu, CFA
    Date Submitted: 17 Jul 2016
    Views: 621
    Downloads: 6
    This is a research report published by UCON Investments.
  • Credit investment in China: The Guideline and Our Approaches

    Source: WeiYong Gu, CFA
    Date Submitted: 17 Jul 2016
    Views: 647
    Downloads: 5
    This is a research report published by UCON Investments in August 2015.
  • What Does the Chaori Default Mean for the Chinese Financial Markets? Share on Facebook Share on Twitter Share on LinkedIn Share via E-Mail

    Source: Larry Cao, CFA
    Date Submitted: 29 Jun 2016
    Views: 232
    Downloads: 0
    This is a blog posted on CFA Institute's website on 13 March 2014.
  • What Makes Emerging Market Debt Tick?

    Source: Larry Cao, CFA
    Date Submitted: 29 Jun 2016
    Views: 303
    Downloads: 4
    This is a blog posted on CFA Institute's website on 29 April 2014.
  • Emerging Market Debt: An Overlooked Source of Alpha?

    Source: Larry Cao, CFA
    Date Submitted: 29 Jun 2016
    Views: 570
    Downloads: 3
    This is a blog posted on CFA Institute's website on 28 May 2014.
  • Japan Enters Recession: Should We Be Surprised?

    Source: Ron Rimkus, CFA
    Date Submitted: 29 Jun 2016
    Views: 267
    Downloads: 0
    This is a blog posted on CFA Institute's website on 17 November 2014.
  • Basis risk of banking interest rate cross hedging with OTC instruments in Thailand

    Source: Savin Wangtal
    Date Submitted: 23 Jun 2016
    Views: 468
    Downloads: 9
    Modern papers often focus at time-varying regression based or dynamic hedging of interest rate instruments, which does not work well in undeveloped market with limited hedging instruments. This paper examine of hedging in basis risk and required turnover from rebalancing in simple hedging approaches that can be easily employed in undeveloped market such as Thailand.
  • Bonds = Risks

    Source: A. Michael Lipper, CFA
    Date Submitted: 19 Jun 2016
    Views: 554
    Downloads: 0
    This is a blog posted on CFA Institute's website on 10 October 2014.
  • Two Questions I Am Asking to Survive This Market

    Source: A. Michael Lipper, CFA
    Date Submitted: 19 Jun 2016
    Views: 311
    Downloads: 2
    This is a blog posted on CFA Institute's website on 18 October 2014.
  • Upside Volatility Is Rising, along with Fixed-Income Leverage

    Source: A. Michael Lipper, CFA
    Date Submitted: 19 Jun 2016
    Views: 251
    Downloads: 0
    This is a blog posted on CFA Institute's website on 12 November 2014.
  • 中国信用市场的投资机会

    Source: 李向辉, CFA, FRM, CAIA
    Date Submitted: 15 Jun 2016
    Views: 423
    Downloads: 2
    This article appears on CFA Institute hedge fund journal 2014 issue, season 2.
  • 全球债券的新时代: 你所知道的都是错的

    Source: Jason Voss, CFA
    Date Submitted: 14 Jun 2016
    Views: 277
    Downloads: 1
    This article appears on CFA Institute hedge fund journal 2013 issue, season 2. The original article appears on CFA Institute's official website:
  • 孙志鹏:债券市场潜力无限

    Source: 张佳昺, CFA
    Date Submitted: 14 Jun 2016
    Views: 334
    Downloads: 1
    This article appears on CFA Institute hedge fund journal 2013 issue, season 1.
  • Model Request for Proposal—Fixed Income: A Template for Small Institutional Investors

    Source: CFA Institute
    Date Submitted: 13 Jun 2016
    Views: 751
    Downloads: 1
    This paper appeared on CFA Institute's website in September 2008.
  • 国债期货的现货基础

    Source: 孙志鹏, CFA
    Date Submitted: 07 Jun 2016
    Views: 330
    Downloads: 2
    This article appears on CFA Institute hedge fund journal 2014 issue, season 1.
  • “Dim Sum” on the Financial Menu

    Source: Bob Dannhauser
    Date Submitted: 06 Jun 2016
    Views: 550
    Downloads: 2
    This is a blog posted on CFA Institute's website on 23 September 2011
  • AIJ Fallout Casts Harsh Spotlight on Japan’s Pension Fund Managers

    Source: Alexander Flatscher
    Date Submitted: 06 Jun 2016
    Views: 278
    Downloads: 0
    This is a blog posted on CFA Institute's website on 7 March 2012.
  • Japan’s Government Pension Investment Fund, Among Others, Forced Away from Fixed Income

    Source: Alexander Flatscher
    Date Submitted: 06 Jun 2016
    Views: 385
    Downloads: 0
    This is a blog posted on CFA Institute's website on 23 October 2012.
  • Chinese Shadow Banking: Risks and Rewards

    Source: Alan Lok
    Date Submitted: 05 Jun 2016
    Views: 878
    Downloads: 5
    This is a blog posted on CFA Institute's website on 23 December 2014.