Trust Update for June: Number, Assets, Maturity Down, Interest Rates Up

Charts from 金牛理财. Report here. Put them together and the picture is consistent with the headlines. Investors are worried about lending to real estate developers, which is why the number of real estate trusts is still low and the types of trusts normally used for real estate, such as trust loans, are down sharply. One big difference from WMPs is that investors aren't piling into short-term trusts, they are abandoning them. Risk averse investors have gravitated towards WMPs, while the risk takers are still investing in longer maturity, high yield trusts.

The number of trusts in the bar, left scale. Money raised the line, right scale. The dark blue at the bottom of the bars is real estate.

Same pattern with newly established trusts:

Here's average maturity. Short-term trusts are disappearing.

Here's average maturity and average interest rates. There's your tight credit.

Here's the type of trust by structure. Dark blue are loans and the light blue is securities, which includes debt. The average maturity of the securities class of trusts jumped from 1.71 years to 4.09 years in June.

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