MIK may continue to book losses in 2022. This is because slow dissemination in the liquidity-provider business leaves more funds parked in much lower yielding investments, and the asset yields do not fully cover funding costs, after considering foreign-currency hedge expenses. However, the losses could be smaller than a year ago. This is because steady revenue streams from its securitization pass-through business (its other main business) will support revenue. Asset yields could gradually improve amid stronger economic growth in 2023 and higher interest rates. In addition, recent monetary tightening measures are modestly positive for MIK's net interest margins (NIM), although margins could improve at a slower pace than the increase in policy rates. This stems from high competition in the
