Can I buy low-risk financial products with confidence?

The expression bank financial management is actually very inaccurate. Strictly speaking, it should be called financial management products in banks. Because banks themselves do not directly sell financial products, they use their channel advantages to "eat both ends." Of course, sometimes banks will also provide some low-risk investment products that are directly related to themselves. In this issue of the Fixed Income Weekly Report, I will analyze its internal logic, risks and investment methods in detail.

Bank financial products are divided into two directions. One is financial products sold in its own name, and the other is various financial products sold on a commission basis using channel advantages.

For more explanations on fixed income products, everyone is welcome to send private messages to the editor with the keywords "fixed income and "fixed income". 1. Structured deposits (3-5)

This It is a type of financial product often seen in the market. Although it is called a deposit, its actual operating logic is completely different from that of a deposit.

Structured deposits are based on ordinary foreign exchange deposits. Embedding certain financial derivatives (mainly various types of options), which are linked to fluctuations in interest rates, exchange rates, indices, etc., or to the credit status of an entity, thereby allowing depositors to obtain higher returns while bearing certain risks. Business product. It is a product transaction that combines fixed income products and options. Through the combination of options and fixed income products, the investment returns of structured products are linked to the price fluctuations of the underlying related assets. The effect can achieve the function of protecting principal to a certain extent or obtaining a higher return on investment.

It sounds very complicated, but we only need to understand two points when making investments. First, this kind of structure. Deposits are often principal-guaranteed. Second, the income range it gives is achievable under 80%, but the income is volatile, and usually we cannot get the highest range of floating income. 2. Large-denomination certificates of deposit. 3-4)

This refers to the large-amount fixed deposit business provided by banks for high-net-worth customers. The minimum starting range is usually more than 500,000. Of course, the larger the amount of funds, the better. When investing in certificates of deposit, it is recommended that the smaller the bank, the better. Because the bigger the store, the bigger the customer, the bigger the store! 3. Self-financing low-risk products (around 5)

What we usually see in banks Financial products will have a risk level prompt, ranging from R1-R5. The higher the number, the higher the risk. However, we can see that most of them in banks are R2-R3, which is within the controllable risk range. Most products have a unique feature, that is, the investment direction and asset management side are not clear. If this kind of product is introduced to other financial institutions, it must not be purchased, but because of the high credit rating of the bank, since it is not clear, then If something goes wrong, the bank is solely responsible, which is a direct reason why banks set up financial management subsidiaries. 4. Large-amount investment package products (5-6)

In my impression, bank financial products are low-priced. The risk is low and the return is low, but occasionally there are financial products with an expected return rate of more than 5 or even 6. The investment threshold for this type of product is relatively high, and 300,000 is a common threshold.

The investment scope is mainly concentrated in two. In this direction, short-term bonds and trusts, the former's income is difficult to reach 6 but accounts for the majority, while the latter's trust income can currently reach more than 7, accounting for a small portion. When the two are combined, relatively high financial management income will appear.

Objectively speaking, this type of product has certain risks, but it is completely controllable because no trust company dares to provide junk debt to the largest investor bank, such as short-term debt and inter-bank lending. All fall into the low-risk category. 5. Channel agency sales

① Agency sales of financial products approved by the head office or provincial bank, usually including trust, asset management, insurance, etc. (6-8).

②Business resource exchange marketing meeting (concrete analysis of specific situations).

③ The branch president or even the financial manager’s order (with certain risks).

④ Equity investments provided by private banks (very high risk).

⑤ Fraudulent financial management in banks (you need to be wary if the income exceeds 6).

6. Investment methods and precautions

After sorting out the general types of bank financial management, let’s summarize the methods and precautions for investment bank financial management.

Here I classify by two indicators: risk type and expected return.

① Extremely risk-averse, that is, not pursuing returns, as long as it is absolutely safe. Large-denomination certificates of deposit and bank self-financing financial products are risk-free financial products that you can buy with confidence.

② Low-risk investors, that is, within the safety margin, can appropriately accept new financial management products. The overall risk of large-asset investment package financial products is within controllable range.

③Stable investors, trust-type fixed-income financial products recommended by private banking departments. The vast majority of trust companies' highest-quality asset packages are allocated to the banking system, and in order to maintain long-term cooperative relationships with banks, the major financiers, trust companies usually maintain immediate redemption and follow-up.

④The ignorant and fearless type simply believes in the bank, the bank’s financial manager, and the people in the bank. This kind of person is the most dangerous. Although the credit of the bank is high, it is difficult to guarantee the professional ethics of bank staff. That is why the case of the female president of Minsheng Bank forging a fake financial management of RMB 3 billion occurred. At the same time, the investment analysis ability of bank staff is very questionable. For example, in the Liubao Fund case, a large number of investors relied on the recommendations of multiple bank presidents. In addition, the staff who appear at the bank may also be insurance companies, brokers and other institutions. This is also an important reason why many people go to banks to buy financial management but buy insurance instead. 7. Analysis of the latest developments

Large commercial banks have set up wealth management subsidiaries one after another. This behavior has two purposes. The first is to isolate risks, and the other is to directly produce wealth management products, which means to control and manage risks and increase competition. power, of course, can also increase profits.

Isolation risk: The four major banks of China Construction Bank, China Construction Bank and Industry and Agriculture Bank have more than 100,000 employees across the country. In addition to the investment risks of the product itself, it is difficult to ensure that a small number of them are motivated by interests. Extreme cases such as the female president of China Minsheng Bank forging fake financial management worth RMB 3 billion, or the president of Liubao Fund Bank selling on behalf of others. In the future, the establishment of bank financial management subsidiaries can provide unified management of bank financial management products, which can greatly reduce the risk events caused by false orders, especially personal selfish interests.

Of course, the core role is to isolate bank credit risks and prepare for the future of bank financial management to break the rigid redemption. Banks are the absolute core of our country's economic system and cannot be compromised. However, investment does have risks. The current total scale of bank financial management is about 22 trillion, which is a huge source of risk. Therefore, establishing a wealth management subsidiary and isolating risks from a legal perspective should be regarded as an important preparation to break the rigid redemption after the new asset management regulations are implemented in the future.

The establishment of financial management subsidiaries is also an important means to enhance the competitiveness of bank financial products. In the past, bank financial management was a sideline business for banks, which also resulted in a situation where bank financial management was less competitive than the financial products of other financial institutions. The number one position in managed assets has also been replaced by trusts. With the official operation of bank wealth management subsidiaries, there will inevitably be many changes in bank wealth management products in the future, and the scope of risks and returns should be significantly expanded. We are waiting for the banking system to launch the first hot-selling wealth management product.