The nation's sales of asset-backed securities will recover this year, after a decline last year, as companies sell bonds backed by homes and office buildings to meet demand for higher-yielding assets, Fitch Ratings said.
Insurance companies and banks may arrange more sales of debt backed by real-estate assets, freeing up funds for investment, said Tino Jang (
"Taiwan's securitization market this year should slightly outgrow last year's as quite a few local companies have inquired with us about their issuing plans," Jang said in a March 27 interview. Companies "can realize capital gains and with this money they can invest in other properties."
Asset-backed securities may attract investors looking for higher yields than they can get on government debt.
The nation's 10-year bonds are the second-lowest yielding in the Asia-Pacific region after Japan.
Issuance of asset-backed securities fell 29 percent last year as rising defaults on credit-card payments made the assets less attractive to repackage into bonds, Fitch data showed.
Securitized products that will be popular this year include those backed by trade receivables, auto loans and equipment leases, as well as REITs, Jang said.
Cathay Financial Holding Co (
Sales of credit-card backed debt fell last year as the nation recovered from a crisis that started in the fourth quarter of 2005 when consumers failed to pay bills on cards aggressively marketed to them by banks.
The demand for higher-yielding assets will allow more than NT$110 billion of collateralized debt obligations (CDOs) to be sold this year, said Jackie Lee (
CDOs are created by pooling bonds, loans or credit-default swaps and using their income to pay coupons to investors. CDOs are divided into different portions of varying risk, which can offer higher returns than the debt they are based on or equivalently rated bonds.
The nation opened its markets to securitized products in June 2002 with the Financial Asset Securitization Law (
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily