Fixed Income Non-Recourse Loans

For 2020, Yukai Capital is now providing a non-recourse financing solution for holders of fixed income securities issued by regional issuers against the backdrop of an opaque and potentially deteriorating secondary market.

In the past weeks Yukai Capital’s new financing product provides bond holders requiring a solution to hedge against downside risk and a possible increase in corporate defaults.

We have structured a bespoke financing solution to provide liquidity for qualified individuals and corporate entities who are seeking an alternative to full recourse margin lending.

In collaboration with our Hong Kong investment managers, Yukai Capital’s bespoke solution allows bond holders to unlock the equity held in their assets and create liquidity in a short time frame.

This not only enables bond holders to hedge against the downgrading of assets and issuers but also enhances the ability to redeploy capital in a volatile and potentially lucrative market.

This solution is available for Corporate Bonds that are rated and traded on secondary markets.

General terms offered:

    Loan amounts from USD $10,000,000. To over USD $500,000,000
    Loan to Values (LTV) of up to 65%
    Fixed annual interest rates starting from 3% and up
    Minimum loan term of 24 months
    100% non-recourse loan structure
    Assets will be held with large and reputable banks and brokerages (title transfer required)
Please contact us for additional information or to apply for our Fixed Income Loan program.

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Yukai Capital Group offers a non-recourse liquidity solution for investors of corporate fixed income assets.

This solution is available against fixed income assets that are rated and issued by listed companies in select markets and offers the following benefits for clients:

    Loan amounts from USD $10,000,000 and up
    Fast access to capital and liquidity
    Loan terms of from two years and up
    Loan to Value (LTV) of up to 65%
    Interest rates from 3.5% P.A.
    Funding in multiple currencies
    100% non-recourse structure
    Accelerated KYC and Due Diligence process
    Acceptance of Investment Grade and some Non-Investment Grade rated assets

The execution and management of these transactions will be done under a regulated “onshore” investment manager in Hong Kong.

Much like a Repo, this is a structured sale requiring the transfer of title for the duration of the loan term. Borrowers have the ability to repurchase the asset under the terms of the contract.


Available Markets

China – European Union States – Hong Kong – Indonesia – Japan – Malaysia – Philippines – Singapore – Thailand – United Kingdom