Non Standard New Deal Comes Out Of Rectification Pressure, Re Ignition Customized Debt Issuance, Public Demand Or Heating Up

The era of "word game" has ended in controlling the amount of non-standard (non standardized creditor assets).

In October 12th, the central bank issued the "standard creditor's assets recognition rules (Draft)" (hereinafter referred to as the non standard new deal), which further tightened the definition of non-standard, which is also regarded as the supporting rules for the new regulation of financial management ("guiding opinions on regulating asset management business of financial institutions").

In the new deal, regulators used the exhaustive way to limit the scope of non-standard to products such as treasury bonds, central banks, bonds, asset-backed securities, asset backed notes, bond raising funds and so on. However, the previous "bank's direct financing tools", as well as the "non non-standard" (such as the investment plan, income certificate or asset support plan), which were not registered with the standard assets, but were not included in non-standard assets under the structural arrangement, were directly identified as "non-standard".

In the industry view, this initiative will allow the information management products owned by the 35% non-standard amount is facing greater pressure of rectification. After the non standard transfer to the "non non standard" mode has been blocked, business requirements such as customized bonds issuance and public offering outside the Commission will be further recovered between the information management institutions.

Difficult to renew "non standard"

The tightening of the non-standard new deal is more severe than expected.

Previously, a lot of non-standard non-standard assets such as North Gold listed assets, private ABS and other "non non standard" assets were listed as non-standard, or even approved by the CBRC, which was officially recognized as "non-standard" assets that were transferred and centrally registered in the center.

In the end, it can be exempted as non-standard assets, and only three items are "deposit", "bond reverse repurchase" and "interbank loan".

According to CICC estimates, the scale of "non non-standard" is about 2-3 trillion yuan, and the loss of its legitimacy as a standardized asset will undoubtedly blow up some non-standard non-standard businesses of information management institutions.

"One of our main businesses in recent years is to help banks become ABS. If there is no" non standard "recognition, bank demand will not only decline, but also the value and demand of this business will be greatly reduced. A Beijing small and medium brokerage broker said.

However, in the CICC team, it seems that the overall scale of financial investment is not affected by the pressure drop. In the short term, it will not lead to excessive risk of financial institutions.

The non standard new deal also reserved space for the "accreditation platform" of standardized assets. According to the regulations, if we do not meet the requirements of standardized assets, if we meet the five requirements of the new regulation of assets management, such as differentiation, transaction, full disclosure of information, centralized registration, independent trusteeship, fair pricing and perfect liquidity mechanism, with the approval of the State Council, we can submit an application to the central bank by the market agreed by the State Council.

However, the non commodity and futures financial markets established under the approval of the State Council include the interbank market, Shanghai Stock Exchange, Shenzhen Stock Exchange and new three boards. Some analysts said that if the new three boards around the development of solid income products trading plate, it is also expected to form a new standardized asset pool.

However, a person close to the regulatory authorities revealed that the possibility of the new three board "part-time job debt" is negligible.

"Shanghai and Shenzhen are stock exchanges, and bonds are also securities, so there is an exchange bond market. But the new three board market is positioned as a share transfer system, not a securities or bond. Those who are close to the regulators point out, "and there is a regulatory division between the interbank market and the exchange market itself. If the new three boards are joined, it is almost the same as duplication of construction, and it is possible to create a number of structured bonds that are related to equity, but there is little possibility of large-scale promotion of bonds to the business and the formation of new standardized asset sites."

Alternative demand

In order to take account of the adaptability of the resources management institutions, the transitional arrangement is provided in the new non-standard new deal, that is, the "non non standard" stock held before the implementation of the new regulation during the transition period of the new regulation of information management can exempt the requirements of the new regulation for the management of non-standard assets in terms of time matching, quota management, concentration management and information disclosure.

But at present, a lot of information management agencies have been thinking about coping strategies.

Some people in the industry believe that before the non-standard transfer to the "non non standard" path, through a relatively simple asset arrangement, we can achieve "non non standard" identification to meet the non standard amount of diversion. Under the new caliber, the non standard transfer to "non standard" or the transition from "non-standard to standard" mode will be further carried out.

"No matter whether the use of the silver center or the north gold is listed, it is endorsed by a market approved asset transfer platform, which allows the asset to be nominally transferable, but the actual risk pricing, risk taking and the impact of liquidity management are no different from the previous non-standard assets, which requires the management institutions to further improve the" transfer standard "mode. A Southern China stock management information department said.

In the industry view, this trend will prompt banks and information management agencies to promote non-standard conversion of products such as bonds or ABS.

"There are also some non-standard financing requirements that have been converted into bonds, and some non-standard assets such as trust income rights have been used as the basic assets of the ABS, but the overall scale is not large, as compared with the non-standard exhibition industry, the cost is lower and the efficiency is higher." A securities broker in East China said, "however, bonds and ABS may become a new direction of non-standard demand conversion after being blocked."

"The transfer of non-standard demand to customized bonds and ABS products, investors, underlying assets, duration may not change, the only difference is a wrapped in bonds." The above sources said.

However, there are also those who believe that if the non-standard financing needs are translated into private debt with almost no liquidity, the symbolic meaning of "non-standard transfer" is still greater than the actual significance.

"Nonstandard or standard may be not just a definition, but a measure of the real risk bearing and liquidity of assets, and taking into account the impact of possession of such assets on information management products." The head of a private bond firm in Shanghai said, "if the investment is private credit debt of private enterprises, then the liquidity and traditional non-standard differences are not large. It is nothing more than a new and high cost arbitrage channel."

In addition, public demand and other business needs are likely to further uplift. This is because, according to the definition of non standard new deal, "fixed income public offering of securities investment funds" also belongs to recognized standardized assets.

"The reason why banks choose non standard rather than standardized assets is because the underlying underlying income is even higher. If we can not achieve profits through non-standard, then the pursuit of excess returns through MOM, FOF and other public offering outsourcing channels will become a possibility. This will also guide the debt base to continue to expand. After all, debt based assets belong to standardized assets is also a new formulation. Whether the public offerings of financial subsidiaries, trusts and other institutions will be included in the future is also needed to be observed." The aforementioned sources said.