Investors who bought loans hoping to gain from tighter monetary policy have been blindsided by a repricing tsunami that wiped out the benefits of Libor’s jump to an eight-year high.
For the first time since the 2008 financial crisis, financial institutions have begun to reduce headcount in compliance.
If the HKMA were forced to act, or even chose to act prematurely, the effect would be to push up Hong Kong’s stubbornly low interest rates, marking a dramatic reversal for a city where shares are at a two-year high and housing prices have soared to records.
The pursuit for high-yielding assets continues to be strong among Japanese retail investors. India stands out because of a slew of positive stories -- it offers a high yield and yet the market is very stable.