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Last year they banned the pooling trick, requiring each trust product to be tied to a discrete set of loans.
"Now we have a 57-day trust product with a yield rate of 2.6 percent," the manager told one prospective client over the phone.
It was not the first trust product to get into trouble: over 20 have reportedly missed interest payments and at least one product has shaved a little off the principal.
Currency controls would stop panicked Chinese from spiriting their money out of the country.The fate of China Credit Equals Gold, the troubled trust product based on loans to Zhenfu Energy, is instructive.
Sometimes reps cannot see a breakout idea and they have to trust product management's view that it really is a breakthrough.
One reason it works so well is that customers are more likely to trust product recommendations from their peers than the blasts of commercial messages they are subjected to day-in, day-out.
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As for the crackdown on trust products, regulators may have difficulty, analysts say.
The trust companies got round this by maintaining a pool of loans funded by several trust products.
That makes trust products, with advertised yields of around 10%, enormously alluring.Liansheng Group and Zhenfu Energy are unlikely to be the trust sector's only struggling borrowers.
Nippon said the equity stake was part of a broader agreement under which Putnam and Nissay would cooperate to develop a line of yen-denominated investment trust products.
The planned purchases will permit MetLife to maintain its 58percentt ownership of Reinsurance Group of America if certain trust products offered by the reinsurer are converted into shares, a spokeswoman said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com