Securities firms have been caught engaging in illegal “bond shuffling” practices, transferring bond losses, sometimes amounting to as much as 500 billion won (US$383.44 million), to other clients in an attempt to preserve investment returns for certain institutions and corporations. These activities
The author is an analyst of KB Securities. He can be reached at jk.lim@kbfg.com. -- Ed. Overview: Focus on profit-taking for now; buy after rate reversal endsWith KTB yields across all maturities just below the base rate, low interest rates are burdensome given that investors are expecting rate cuts
As the interest rates of South Korean bonds have increased more than 20 percent over the past month, domestic securities companies which own 212 trillion won (US$176.37 billion) worth of bonds are on alert. A rise in bond interest rates means a fall in bond prices. Therefore, the financial soundness
Investors are losing interest in South Korean bond-type funds, which have drawn until recently a large amount of capital amid growing uncertainties in the global financial market and concerns about global economic slowdown.The net outflow of capital from 274 domestic bond-type funds came to 608.10 b
South Korean investors are turning to offshore asset investment. The size of overseas investment funds fell short of 80 trillion won (US$66.06 billion) at the end of 2016 but has more than doubled in just two years to 170 trillion won (US$140.38 billion). An increasing number of investors is flockin
The total amount of principal invested in domestic bond-type funds has topped 120 trillion won (US$101.82 billion) for the first time as a large amount of investors' money keeps flowing into bond funds, which are considered risk free assets, amid concerns about the slowdown of the Korean economy
The Korea Securities Depository (KSD) announced on July 19 that dividend payouts by funds came to 8.32 trillion won (US$7.08 billion) in the first half of this year, down 24.9 percent from 11.10 trillion won (US$9.44 billion) a year ago.Dividend payouts by public offering funds decreased 14.1 percen
The net asset value of bond-type exchange-traded funds (ETFs) surpassed 6 trillion won (US$5.16 billion) this month. With uncertainty arising from the stock market and expectations on interest rates going lower, a large amount of money in the EFT market is flowing into bond ETFs which follow the bon
Bond prices are rising as stock market volatility is growing due to the heightening trade tensions between the United States and China. Interest rates are on the decline due to a rapid increase in demand for bonds and the interest rates of some treasury bonds are hitting the yearly low every day.The
The South Korean fund market enjoyed an inflow of more than 1 trillion won (US$878.35 million), mostly into bond-type funds, in March.The net asset value of local investment funds came to 584.78 trillion won (US$510.13 billion) as of the end of March, up 0.2 percent from 1.11 trillion won (US$978.48
The South Korean stock market had been bullish throughout last week. Investors' confidence was lifted by expectations for smooth trade negotiations between the United States and China, announcement of the U.S.’ provisional agreement on budgets and a bullish Chinese stock market based on electric
Retail stock investors are underperforming in indirect investment through funds as well as in direct investment. They are not benefiting from the rising stock market since the turn of the year as they have betted largely on bond-type funds, which are more like risk-free assets, while shunning Samsun
The so—called Korea-US-Japan Alliance which includes SK Hynix was selected as the winner to take over Toshiba's semiconductor business after a long melee. As the future of the world's second-largest NAND flash maker, Toshiba Semiconductor, is determined, a sea change will be made in the world semico
The Korea Financial Investment Association announced on Oct. 23 that global net fund assets increased by US$1.2 trillion between the first and second quarters of this year to reach a new high of US$32 trillion.“This is because many stock markets around the world were bullish based on the high econom
It has been found that the money drain from bond-type funds is slowing down in spite of the possibility of a foreign exchange crisis in India and the Fed’s remarks on the end of the quantitative easing. According to the Korea Financial Investment Association (KOFIA), the 30-year government bond yiel
A great rotation, which signals a shift of funds from bonds to stocks, is underway as global interest rates show an upward trend. For example, the 10-year US Treasury Bond rate jumped to 2.483% on July 22 (local time), 0.871 percentage point higher than this year’s low recorded on May 1. Global inve