Structured Note, Commercial paper, and Money Market Funds

I received the following questions in my inbox and I’m posting them here with our responses:

We are wondering some special assets should be included in the scope, such as

  1. Structured Note - Does it belong to derivatives or bond? Since it may combines both bond and derivative products.

Response: the bond part should be covered by targets(if they are corporate bonds), and it might require manual remapping of identifiers of the structured notes to the bond issuer. The principle is that the “required asset classes” in Table 5.2 take precedence even if they are mixed with other types of instruments.

  1. Commercial paper

Response: they are out of scope at the moment, but will be explored further in our development for securities underwriting.

  1. Money Market Funds - Since the product usually include commercial papers, bank deposits, and repurchase agreement(RP).

Response: they are out of the scope at the moment.

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