Volatile Corporate Bonds
On October 24, the prices of Hanjin Shipping’s corporate bonds rose, for the first time in seven days, by more than 8%. For example, the three-year Hanjin Shipping 76-2 maturing in June next year gained 100 won and closed at 1,300 won while the Hanjin Shipping 78 maturing in May next year gained no less than 15.89%.
The prices were bullish in spite of the news released that day that it would dispose of its office in Europe as well as the fact that the company went into receivership last month. According to experts, this is because the increased risk attracted speculators. That day, its stock price fell 11.84% and closed at 1,005 won per share after dipping below 1,000 won per share during the trading session. The price of the corporate bond of Hanjin Shipping has continued to fall since late last year, when it was as high as 9,300 won.
In the meantime, the five-year Daewoo Shipbuilding & Marine Engineering 5-2 maturing in November next year lost 9.44% on October 24. The price of this bond fell from 7,850 won to 7,200 won between October 11 and 21. On the contrary, the Daewoo Shipbuilding & Marine Engineering 7 maturing in 2018 closed at 7,499 won after gaining 5.62%.