Sharp Decrease
It has been found that the amount of corporate bonds issued in South Korea last month fell 11% from a year ago. It seems that this has to do with an increase in bond interest rate volatility that is attributable to the probability of an interest rate hike by the Fed. Specifically, a total of 38 corporate bonds worth 2.7020 trillion won (US$2.4 billion) were issued in the country last month.
Institutional investors tend not to make a large investment at year’s end because they have to settle accounts. This year, their cut in investment began earlier than in the previous years. The largest one of the 38 cases is Samsung C&T’s 400 billion won (US$3.6 million) bond issued on October 28.
KB Investment & Securities managed the issuance of 11 corporate bonds (632.4 billion won or US$565.9 million) during the period. It was followed by Korea Investment & Securities (13 cases, 441.2 billion won or US$394.8 million), Samsung Securities (282.5 billion won or US$252.8 million), Shinhan Investment Corporation (239.7 billion won or US$214.5 million) and Mirae Asset Daewoo (165 billion won or US$147 million).
Last month, credit rating agencies at home and abroad adjusted the credit ratings of nine and 14 companies upward and downward, respectively. The former include four financial institutions and the latter include five financial institutions and two utility companies.