Bangkok--5 Jan--Fitch Ratings
Fitch Ratings has released its inaugural investor sentiment survey of Non Japan Asian Structured Finance (NJA SF) investors and found a reduced but existing appetite for structured products at higher spreads than pre-crisis levels.
The survey found that investors in NJA SF expect asset performance of underlying structured finance assets in the region to remain generally stable in the next six months. 38% of respondents do not expect to invest in any NJA SF transactions within the next 18 months reflecting the reduced appetite for structured products, while 30% of respondents are either acquiring structured finance assets or expecting to do so in the next six months. The rest of the respondents expect to invest in structured finance transactions in the next six to 18 months time. Respondents primarily hold Korea ABS (including credit cards, auto loans etc), Korea RMBS, Singapore CMBS, CDOs and other structured products in their current portfolio.
"NJA SF investors are still reluctant to invest in most structured finance debt at pre-crisis pricing levels. This is in contrast with the tightening spread seen in the other major markets after the announcement of the TALF programme in the U.S.," says Peeyush Pallav, Director in Fitch's Non Japan Asia Structured Finance team.
Expectations are that asset performance in the Non Japan Asia region will remain largely stable, with none of the respondents expecting that asset performance to either worsen drastically or improve significantly in the next six months.
The credit markets research report entitled "Inaugural Non-Japan Asia SF Investor Survey, November 2009" is available on the agency's public website, www.fitchratings.com.
Contacts: Peeyush Pallav, CFA, Singapore, +65 6796 7236/
[email protected]; Stan Ho, Hong Kong, +852 2263 9668/
[email protected]; Wayne Li, Hong Kong, +852 2263 9915/
[email protected].
Media Relations: Karen Cho, Hong Kong, Tel: +852 2263 9935, Email:
[email protected]; Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email:
[email protected].