HSI CBBCs Selection

After selecting your direction, one can refer to the most active CBBCs trading region of the day and choose the product that an issuer provides the good liquidity in the region.

When the difference between a CBBCs’ call level and the HSI’s spot price is smaller than the highest volatility level in recent market, that CBBC may face higher called risk. Think about a CBBC could be knocked out, if market moves at its highest volatility, just in an opposite direction that an investor expects. On the contrary, when the highest volatility in recent market is in fact, low, that CBBC may face lower called risk. Having said that, a higher volatility and a closer call level, also equal to the chance of getting higher potential revenue from a CBBC. CS provides the recent highest market volatility data, investors can use this data to compare CBBCs with different call level and make the best decision.