China's fledgling securitisation market showing signs of risk
Analysts point to over-optimistic cash flow projections, disclosure problems
Sat, Jun 17, 2017 - 5:50 AM
The big worry is that some underwriters and rating agencies could collude with issuers to package shoddy assets into hard-to-understand bundles of products and sell them to an unsuspecting public.
AS CHINA struggles to wean its economy off excessive debt, its fledgling securitisation market has exploded with cash-starved banks, local governments and private firms rushing to convert assets into cash.
China's market in asset-backed securities (ABS), a financing...