First Plus Asset Management (“FPAM”) just launched its Asia Special Situations Fund in June 2020.
Led by the Chief Commercial Officer, Tie Lie, we seek to exploit the market value in instruments such as credit, equity, currency rate and interest rate in Asia, Europe and US; that has greatly deviated from its fundamentals based on credit analysis.
Recovery from Covid-19 is lagging expectations, leading to various high yield investment opportunities due to international market correction. As banks continue to curb corporate lending due to Covid-19, there is a funding gap that presents opportunities for asset-backed lending and off-balance sheet financing with higher-yield and lower duration compared to traditional financing instruments.
Through its platform, First Plus has launched a unique investment opportunity in the Hong Kong Residential Mortgage Market. Due to stringent regulations from the Hong Kong Monetary Authority resulting in lower Loan-to-value (“LTV”) financings available to home buyers, non-licensed money lenders have stepped in to meet this rising demand for higher LTV mortgage products. This provided an opportunity for First Plus to support these non-bank mortgage lenders in Hong Kong to meet the growing needs of home buyers, by providing warehouse financing to mortgage originators in Hong Kong in partnership with a global bank.