Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Baidu is gearing up to release its second-quarter earnings on Monday with the market expecting a sharp decline in profit.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia rose on Monday as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Trump said Cook made a "good case" that it would be difficult for Apple to pay tariffs, when Samsung does not face the same hurdle because much of its manufacturing is in...Technologyread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
The hearing will now begin next Monday to allow time for the completion of a previous trial that revolves around former 1MDB unit SRC International, a Kuala Lumpur High Court...Asia Newsread more
Despite public criticism about a lack of transparency in some practices, Ant Financial is doing things the right way, a senior executive at the company said Wednesday.
The company — which spun off from Chinese e-commerce giant Alibaba to run the massive Alipay digital payments platform — has seen healthy demand for its asset-backed securities, and that's proof enough that it's providing sufficient transparency to investors, the executive said.
Asset-backed securities are financial instruments that are backed by underlying loans and other receivables. In this case, Ant Financial lends money to Alipay users and then packages those debts into asset-backed securities for sale to investors.
"The demand for these securities is very healthy and continuing to expand," Douglas Feagin, senior vice president and head of global business at Ant Financial, told CNBC's "Street Signs. " "That, at the end of the day, is the ultimate barometer of whether you're giving enough information to investors to invest."
"I think seeing that demand is evidence that we're sharing the right kind of information with them," Feagin added.
According to news reports, Moody's Investors Service previously said that companies like Ant Financial needed to be more transparent about how such asset-backed securities are created — including their criteria for lending to underlying borrowers.
"The borrowers that borrow on our platforms are our consumers, which we know very well," Feagin said. "We serve them based on the needs that we see for them in the financial services market place."
The executive added that Ant Financial makes credit decisions based on its own information about the borrowers' "repayment capability and the needs that they have." He said, "We tailor products appropriately to those consumers and it's all those loans that are then embedded into asset-backed securities that are then offered into the market."
In September, Chinese media outlet Caixin reported that after regulators relaxed rules around China's asset-backed securities market in 2014, more companies became active issuers. Asset-backed securities help companies raise money for both investment and other business areas.
Caixin reported that there are 779 corporate asset-backed securities listed on Chinese stock exchanges, with the biggest group being structured notes backed by micro consumer loans. The largest issuers are Huabei and Jiebei, which are online small-loan services of Ant Financial, that have a combined assets worth $14.7 billion, according to Caixin.
The reason why some market watchers are concerned about the rise in asset-backed securities is because sometimes the risks associated with the underlying loans are unclear.
For example, during the global financial crisis, banks sold subprime mortgage-backed securities where, due to poor lending quality, there were a high number of defaults on the underlying housing loans. As a result, the value of those securities fell and, in turn, roiled the global financial system.
Ant Financial's asset-backed securities are currently only available in China. Feagin said that the market there will continue to evolve and that the company is working "closely with the regulators and market participants to offer those securities."
Meanwhile, Feagin also said Ant Financial has set its sights on the massive Southeast Asian market for future growth opportunities by teaming up with local partners in countries like Thailand, Philippines, Malaysia and soon in Indonesia.
"When you look at this market, there are over 600 million people. [Gross domestic product] is growing at one of the fastest rates in the world and there's a huge demand, frankly, for inclusive financial services," Feagin said. He added that there are plenty of people in the region that are currently "either unserved or underserved" by the current financial services system.
"And we're here to serve them," he added.