Tag: trf

Taiwanese SMEs lost an estimated $6.6 billion in TRF (targeted redemption forwards) after the renminbi’s devaluation in 2015. The question now is who will pay back this money?

Taiwan’s financial regulator has put on hold consideration of a proposal to empower banks to check borrowers’ derivatives transaction histories before offering credit.

Selling of risky target redemption forwards could hurt Taiwan’s private sector banks if the renminbi dips another 10%.