Research and Training Conduct in-depth research on global and regional thematic financial topics and provide excellent quality training

Structured financial products are the direct cause of the global financial crisis. As early as in 2005, institutional investors had already started to invest in real-estate mortgage-backed securities and CDOs (collateral debt obligations), and eventually, because of a sudden fall in US property prices, many institutional investors were on the verge of bankruptcy because of the rapid diminution of securitized assets. Finally, in August 2007, the market liquidity suddenly disappeared and investors began to resort to commercial banks, pushing up the inter-bank market interest rates and the entire banking system was severely affected. The United States market has seen a comprehensive liquidity problem, interest rates increased sharply and the subprime crisis has eventually led to the global financial crisis. Till now, the risk of structured products after the financial crisis has not been fully remediated. At present, countries place great importance on the development of financial markets through financial innovation, it is meaningful for us to assess the risk of structured financial products from the perspective of regulatory supervision. Asia Financial Risk Think Tank studies the risk concentration caused by the misuse of structured financial products, mainly focuses on the asymmetry information risk caused by the elongate of the multiple principal-agent relationship and the inaccurate product risk rating.