Hong Kong s residential MBS market is likely to stay quiet for the next year or so and things will not be much busier for commercial MBS, agreed panelists at a recent securitization conference in Hong Kong.

With liquidity abundant and bank financing cheap, there is no demand for securitization as a way to raise finance, said panelists at the conference arranged by Insight. Combine this with the residential mortgage price war that local banks are currently engaged in - meaning that mortgages being written at the moment will not have enough margin to pay MBS investors - and things look bleak indeed.

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