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Recently came across this topic after someone at work mentioned it and we were discussing the viability of this instrument in the local context.
https://www.businesstimes.com.sg/propert...isation-20
Given the most people invest in the actual assets, and if they want exposure to different asset class that are securitised, they can always go for REITs, would there be a market for it?
I note that MAS currently restrict the trading of STOs to accredited investors, and corporates/fam offices. This limits the access of these assets considerable, hence liquidity.
What are the views of VBs here?
You can count on the greed of man for the next recession to happen.
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06-06-2023, 12:52 PM
(This post was last modified: 06-06-2023, 12:53 PM by weijian.)
In securitization, counterparty and trustee used to be neglected but turned out to be key risks. So in my limited knowledge, I assume counterparty and trustee risks are key (but frequently ignored) in tokenization then?
It will be good to let others try out the new technology first and have them pay for the lessons. We just learn (FOC) along the way and when the technology is mature enough for mainstream adoption, there is still plenty of time to benefit from it.
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(06-06-2023, 12:52 PM)weijian Wrote: In securitization, counterparty and trustee used to be neglected but turned out to be key risks. So in my limited knowledge, I assume counterparty and trustee risks are key (but frequently ignored) in tokenization then?
It will be good to let others try out the new technology first and have them pay for the lessons. We just learn (FOC) along the way and when the technology is mature enough for mainstream adoption, there is still plenty of time to benefit from it.
Thanks. I do not profess to understand the issue of counterparty risk and I will read up. My layman understanding is blockchain helps to some degree to mitigate this, but probably the exchange itself is a risk.
One question I have is whether there is any corporate interest from the property developers in this space. Ultimately, this is disruptive to their business models.
You can count on the greed of man for the next recession to happen.