$TRUMP
$XAU
#AnthropicIPOCouldTopSpaceXRecordReportsSay #BSTREndsCantorSPACGoPublicPlan Korean traders chase coupons
at a rate of 40% after a historic sell-off
Individual investors in South Korea are returning to complex, equity-linked securities that offer annual coupons of up to 50%, indicating that last month’s historic sell-off has redirected their appetite for risk rather than reducing it, according to Bloomberg on Sunday.
Sales of equity-linked securities, known as ELS products, reached 3.5 trillion won ($2.50 billion) in July, the highest level since April 2023, according to the Korea Financial Investment Association.
Demand was led by notes linked to Samsung Electronics Co. (KS:005930) and SK Hynix Inc. (KS:000660), two of the largest companies listed in South Korea.
ELS products pay coupons when the underlying stocks or indexes remain within pre-set ranges. Investors can suffer severe losses if those assets fall below certain levels known as “downside knock-in” levels.
Meritz Securities recently issued a note linked to Samsung and SK Hynix equities offering an annual yield of 43.40%. Investors could lose their capital if either stock falls by 70% during the product’s term and stays far from its initial level at maturity.
$XAU
#AnthropicIPOCouldTopSpaceXRecordReportsSay #BSTREndsCantorSPACGoPublicPlan Korean traders chase coupons
at a rate of 40% after a historic sell-off
Individual investors in South Korea are returning to complex, equity-linked securities that offer annual coupons of up to 50%, indicating that last month’s historic sell-off has redirected their appetite for risk rather than reducing it, according to Bloomberg on Sunday.
Sales of equity-linked securities, known as ELS products, reached 3.5 trillion won ($2.50 billion) in July, the highest level since April 2023, according to the Korea Financial Investment Association.
Demand was led by notes linked to Samsung Electronics Co. (KS:005930) and SK Hynix Inc. (KS:000660), two of the largest companies listed in South Korea.
ELS products pay coupons when the underlying stocks or indexes remain within pre-set ranges. Investors can suffer severe losses if those assets fall below certain levels known as “downside knock-in” levels.
Meritz Securities recently issued a note linked to Samsung and SK Hynix equities offering an annual yield of 43.40%. Investors could lose their capital if either stock falls by 70% during the product’s term and stays far from its initial level at maturity.