South Korea Derivative-Linked Securities Sales Up 24.1% in Q1
L'essentiel
- Sales of derivative-linked securities in South Korea surged 24.1% in the first quarter compared to the previous year, reaching 19.6 trillion won ($12.9 billion).
- This growth is driven by investor preference for higher yields, despite the products not guaranteeing principal.
Résumé généré par IA
Pourquoi c'est important
Sales of derivative-linked securities in South Korea grew significantly in the first quarter. These products are structured to track underlying assets but do not guarantee principal.
SEOUL, July 8 (Yonhap) -- Sales of derivative-linked securities in South Korea grew 24.1 percent in the first quarter from a year earlier, data showed Wednesday.
The combined value of equity-linked securities (ELS) and derivative-linked securities (DLS) issued in the January-March period came to 19.6 trillion won (US$12.9 billion), up 3.8 trillion won from a year earlier, according to the data from the Financial Supervisory Service (FSS).
Their outstanding value came to 93.5 trillion won at the end of March, down 1.6 trillion won from the end of last year, the data showed.
Those products are structured to track the performance of underlying assets but do not guarantee the principle, as investors prefer instruments that promise higher yields.
ELS refer to hybrid debt securities whose returns are determined by the performance of underlying equities. ELS products track benchmark stock indexes, including the Korea Composite Stock Price Index 200.
Sales of ELS products came to 5.5 trillion won in the first quarter, up 14.6 percent from a year earlier.
Questions ouvertes
- What specific underlying assets are being tracked?
- What are the average yields offered by these securities?
