Financial planning under the interest rate cut cycle

Chi Lijun, financial planner of China Merchants Bank of China Merchants Bank, believes that it may be entering the interest rate cut cycle. Some wealth management products may be affected by the impact of the financial investment strategy.

Trust wealth management products will be affected

Bankers expect that the biggest impact of the New Deal is undoubtedly the most beautiful trust loan wealth management products in the first half of this year. Due to the tight funding, some enterprises rely on the trust model to raise short-term funds from investors through banks. However, once the central bank loan benchmark interest rate is lowered, the bank deposit reserve ratio will reduce the supply of funds, and the expected income of bank trust loan wealth management products will be lowered, thus affecting investor income.

Chi Lijun suggested that the profit rate of the trust loan wealth management products sold by the bank is adjusted. The specific agreement depends on the agreement of the product specification. If the product specification does not mention that the product yield will be adjusted with the loan interest rate, the yield will not change.

From the current situation, the yield of credit-based wealth management products may only be lower than the expected rate of return, and will not lose money. The worst case is simply that the bank directly passes the risk of return on interest rate cuts to investors, so that the product yield is the same as the benchmark loan interest rate.

Bond products greet the opportunity

Contrary to this, interest rate cuts bring opportunities for bond products. Conventionally, in the case of lower interest rates, bond fields that are inversely related to interest rate levels will tend to be better. In the short term, the reduction of the deposit reserve ratio will make the interbank market