Rich Asian investors are losing billions on fixed coupon notes – The National

Rich Asian investors are losing billions on fixed coupon notes – The National

Structured products called fixed coupon notes attracted scores of private banking clients in Hong Kong and Singapore in recent years, according to half a dozen bankers and advisers who spoke to Bloomberg.. In a bull market, investors keep collecting coupons on these notes and they feel it's a great investment “¦ When the market turns, they get stuck with unimaginable losses.. The promised payouts have since been dwarfed by capital losses as stocks slid and some leveraged holders were forced out of the illiquid notes.. "In a bull market, investors keep collecting coupons on these notes and they feel it's a great investment," says Rahul Banerjee, an ex-Standard Chartered banker and founder of BondEvalue, a FinTech that offers bond pricing services to investors. ". When the market turns, they get stuck with unimaginable losses," he says, estimating wealthy Asian investors are seeing losses in the billions of US dollars.. Some leveraged investors have been forced into selling early at steep discounts, according to investors who asked not to be identified speaking on private matters.. One Singapore-based financial services professional, who asked to remain anonymous, lost between 30 per cent to 40 per cent of the $400,000 he invested in fixed