Non-standard assets include but are not limited to credit assets, trust loans, entrusted claims, acceptance bills, letters of credit, accounts receivable, various types of beneficiary rights, and equity with repurchase clauses 8 types of assets including financing.

1. The concept of non-standard assets

Non-standard assets are also called non-standardized debt assets, which refer to debt assets that are not traded in the inter-bank market and stock exchange market.

2. Characteristics of non-standard assets

1. Customization:

Non-standard assets are usually customized by specific investors or institutions, so they have Highly personalized. Each non-standard asset has its specific investment objectives, risk levels and return expectations.

2. Wide range of investment:

Non-standard assets cover a variety of different types of assets, including real estate, infrastructure, private equity, venture capital, securitization products, etc. This allows investors to choose investment targets that suit them based on their risk appetite and return expectations.

3. High returns and high risks coexist:

Non-standard assets usually have higher returns, but they are also accompanied by higher risks. Since most non-standard assets are not traded in the open market and their price discovery mechanisms are relatively imperfect, investors need to be more cautious in assessing risks and returns.

4. Information disclosure is not transparent:

The information disclosure of non-standard assets is relatively opaque. Investors mainly rely on the asset issuer’s due diligence report and investment agreement and other documents to understand the investment target. Condition. Therefore, investors need to have higher risk management capabilities and due diligence capabilities.

5. Poor liquidity:

Most non-standard assets are not traded in the open market and have poor liquidity. Investors may have difficulty realizing cash quickly when they need funds.

Applications of non-standard assets in financial markets:

1. Meeting specific investment needs:

Non-standard assets can satisfy investors’ needs for specific asset types, Investment needs based on risk levels and expected returns. For example, some investors may prefer investing in specific types of assets, such as real estate or infrastructure, rather than stocks and bonds on the public market.

2. Increase investment returns:

Non-standard assets usually have higher yields and are attractive to investors pursuing higher returns. For example, some private equity funds can achieve higher returns in the short term by investing in startups or small businesses.

3. Risk diversification:

Non-standard assets can be used as an effective supplement to investment portfolios to help investors achieve risk diversification. Since non-standard assets have low correlation with assets on the public market, adding them to a portfolio can reduce overall risk.

4. Liquidity management:

For some investors with greater liquidity needs, non-standard assets can be satisfied by providing longer maturities and stable returns. its liquidity management needs. For example, some long-term infrastructure projects can provide stable cash flow and provide investors with a reliable source of income.

5. Capital appreciation:

Some non-standard assets have great potential for appreciation, such as real estate and private equity funds. By investing in these assets, investors can achieve capital appreciation over an extended period of time.