Big bank bond money to small banks

Source: Internet
Author: User
Keywords Wealth management products big banks interbank markets bond classes
Tags .mall bank of china bank of communications configure configured credit financial financial management
Small-bank products configured with High-yield corporate debt, big banks to configure national debt, central bank bills and financial debt, whose bond financing Chigau?  Puyi Wealth Research by Wang Shufan, a journalist for investment and financial management, shows that the number of debt and money market-related products has risen month by year, and that since April, the number of debt and money market-type financial products has been at the top of various financial products.  Although the bond market has been collated, it has little effect on the income of financial products, and the products of debt management still keep the mainstream position.  However, yields on bonds and money market products are mostly between 1.4% and 2.5%, and are significantly weaker than other products. The reporter found that small and medium banks such products are generally higher than the expected return on large banks. The 3-month bond-type products recently issued by Beijing Bank, Minsheng Bank, Tianjin Bank Beijing branch and Nanjing Bank Beijing branch are expected to yield 2.1%, 2.1%, 2.1% and 2.44% respectively. Such products, recently issued by Bank of China and Bank of communications, are expected to yield 1.86% and 1.9% per cent respectively.  Large and small banks differ by up to 0.58%. The product yield is not directly linked to the size of the bank, and the secret is that the underlying assets of the product configuration are different.  Small-bank products are all configured with corporate bonds, and Minsheng can also deploy riskier trust schemes, while big banks are limited to the allocation of low-risk assets, such as Treasury bonds, central bank bills and financial debt, and are not involved in corporate debt. The yield on corporate bonds is much higher than that of central bank bills, bonds and financial debt.  Nanjing Bank in accordance with the interbank market in April this year to simulate the future, the results show that the annual yield of national debt is only 0.9%, central bank bills of 1.1%, general financial debt of 1.2%, and corporate debt up to 4.29%. It is noteworthy that corporate bonds are issued by enterprises, whose market risk is higher than central bank bills, national debt and financial debt. And, some small banks such products do not promise capital preservation, Nanjing Bank and Beijing Bank recently issued 3-month products are not capital preservation. For such non-capital-protected floating income-type products, some of the financial products of the underlying assets by the relevant enterprises to provide expired repurchase, the risk is basically controllable, for another part of the financial products without relevant provisions, it is necessary to pay attention to the credit risk of the underlying assets.  By contrast, Bank of China and Bank of communications and other large banks of similar products are committed to capital preservation. The difference is that small and medium-sized banks, especially city commercial banks, tend to attract customers with higher yields when issuing bond products, while large banks tend to be more risk-controlled, thus making a difference in the choice of risky assets.  When the individual buys the product that the small bank invests the enterprise debt, the allocation proportion controls between 20% to 30% of the principal. On the other hand, low-rated but High-yield bonds have been the focus of the market's desire to raise fixed-income products for banks. Taking the 7-year corporate debt of the Sino-New Suzhou Industrial Park, which was issued at the end of April as an example, the main body rating is a +, but the coupon rate is as high as 6.7%, while some AA bonds have a nominal interest rate of only 5.88%, spreads haveWas pulled up to about 82 basis points.  So will the big banks be allocating more low ratings and high-yield bonds in the bond pool? According to our correspondent, the big banks are still leaning towards the credit-grade bonds such as financial debt and Treasury bonds in the investment banking market, corporate bonds, corporate bonds and other exchange bond varieties, because of the uneven credit risk, the bank is cautious. In fact, the bond products have formed a rolling mode of distribution, that is, on the basis of stabilizing the stock of funds, through long-term holdings, the ultimate income performance by saving as a baseline.  And 80% of the bank's customers are robust, and these products are attractive to them as long as the yield is higher than the current deposit. Bond-type financial products have guaranteed income and floating income of two kinds, some products are not guaranteed. Floating-income products, operating similar to the bond fund, mainly in the two-tier market to buy and sell long term bonds.  Because of the low interest rates on long-term Treasury bonds, similar products value the two-tier market spreads, and similar products generally do not hold bonds to maturity. Investing in a level two market means that bond prices fluctuate. If banks are buying at a higher bond level and are at a low level when their products are due to be cleared, there is a risk that the investment will be risky. At present, the Bank of similar products in general in the period of 3-6 months, the shortest even 15 days, if the market situation is indeed reversed, there is no chance of flipping.  While the subject matter of the guaranteed income product is similar to that of a floating-income product, the bank provides a guarantee in the design, so the product is basically as safe as a deposit. At present, the bond and money market class financial products are short term, the shortest only 7 days, 3 months of the following financial products accounted for the total number of such financial products issued a proportion of more than 80%, you can see the bond and money market-type financial products liquidity better.
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