In the last few weeks, activity in the Taiwan market has picked up. The SARS virus was one of the key reasons for the slowdown in the development of the Taiwan market, says Andy Lai, managing director and head of the financial engineering group at Societe Generale. SARS affected travel to the region, and consequently led to the postponement of many transactions.
There has also been a slowdown in issuance, says Lai, due to problems associated with mortgage transactions, as the registration system remains a major impediment to structuring RMBS transactions. This continues to delay the process. However, Lai believes that this could be resolved very soon.