Is a portfolio bond trust also a pool of funds?

Mondo Finance Updated on 2024-01-30

With the increasing number of single-standard trust products, the market is now basically a portfolio of trust products. However, investors will also have questions, because their form and non-standard capital pool are similar, and they are also issued on a rolling basis and managed collectively, so will the portfolio bonds also be a capital pool?

Here, we must first make it clear that what we usually call capital pools refers to non-standard capital pool products, and they have two characteristics, one is that you can invest in non-standard assets, and the other is that the bottom of the investment is not clear. Portfolio bond trusts, first of all, they invest in standardized assets, and some trust companies at the bottom will disclose the top ten positions. In addition, there will be certain restrictions on the rating and region of the financing entity.

In fact, it is easy to distinguish between non-standard fund pool products, although some trust companies have also called this product TOT, or active management. But if the essence has not changed, then they are actually still products of non-standard capital pools. Because no matter what the name of your product is, if your product is non-standard, and the specific investment direction is not clear, then this kind of product will basically be defined as a non-standard capital pool.

In fact, in the new regulations on asset management in 2018, the regulator has defined non-standard capital pools, that is, rolling issuance, collective management, and separate pricing. However, the products of portfolio bond trusts, because their underlying assets are standardized, their value is fairly priced. So in the official definition, they do not belong to the pool category of products. We all know that in the larger the market, the value of our products can be fully priced, so that our rights and interests can be maximized.

Although portfolio bond trusts are not capital pool products, their underlying assets also need our attention. Because whether it is a city investment company, a real estate company or other industrial and commercial enterprises, they can issue bonds. However, when we investors buy portfolio bond trust products, we will default to the fact that their underlying assets are urban investment standard bonds, but are the underlying assets?At this time, it is best to hope that the trust company can disclose the structure of the underlying assets and some specific details.

For example, whether the type is the standard bond of the urban investment company, and then whether the rating of the financing entity is AA or AA+, etc. And then in terms of the division of regions, what is the specific proportion of each region, these are all hoped to be able to provide. In this way, it is also part of the means to ensure the safety of the product.

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And in the selection of trust companies, it is also to try to avoid those trust companies that have a large number of non-standard capital pools and real estate projects. Because there is a possibility of risk transfer, why do you say that?I have talked about it many times before, but I won't talk about it this time, if you have anything unclear, you can leave a message in the comment area, and we will reply to you as soon as possible.

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