China Construction Bank was expected to come to market this past Friday with its second non-performing loan securitisation in a week, while the Industrial and Commercial Bank of China also was set for a Friday offering, according to a research paper from S&P Global. China Merchants Bank is also expected to issue its third such offering this week. Since May 2016, five of the six banks that were granted permission to offer NPL securitisations have done so, said S&P. Loan collateral has included credit card receivables, residential mortgages, and corporate loans. Goldman Sachs is to shed up to 30 per cent of its investment bankers in Asia, as it grapples with a regional slowdown, less expensive and better connected local competition and intensifying pressure to improve returns to shareholders. As many as 90 investment bankers across the region will be laid off over the next few months, "according to people familiar with the bank's plans," reports the Financial Times. The bulk of the cuts will be in Hong Kong and Singapore. Headcounts in Australasia and Japan are "unaffected" and departures in mainland China will be relatively few. Collateralised Loan Obligation funds could be squeezed as more companies switch to cheaper one-month Libor contracts, according to Thomson Reuters. CLOs invest in floating rate leveraged loans, which pay lenders an interest rate plus Libor. With three-month Libor hitting a seven-year high of 87 basis points this month, compared to around 53 bps for one-month money, the current 33 bps difference is more than double last year's spread of ten to 15 bps. CLOs interest payments are also under pressure from a refinancing wave that has seen US$275 billion of loans refinanced in the year to 21 September. China's banking commissioner has warned the country's city banks over the hidden credit risks related to the mid-tier lenders' aggressive push into investment products, the Financial Times reports. The banks must reverse the trend in which investments have surpassed lending, Shang Fulin, the head of the China Banking Regulatory Commission, warned a meeting of city lenders in southern China, noting that complex, highly leveraged products had led to the global financial crisis. While the official non-performing loan ratio remains below two per cent, many analysts have suggested that the true figure is nearly 10 times that rate.