Private Placements Account for 78%
The amount of derivatives linked securities (DLS) issued in the first half of this year came to 15.07 trillion won (US$12.73 billion) as of the end of June, Korea Securities Depository (KSD) said on July 25.
The figure represents a 10.3 percent decline from the same period last year, but it marks a 21 percent jump from the 12.45 trillion won (US$10.52 billion) recorded in the second half of last year.
By type of issuance, private placements stood at 11.69 trillion won (US$9.88 billion), accounting for 77.6 percent of the total. The figure shrunk 13.4 percent from 13.50 trillion won (US$11.40 billion) in the same period last year, but rose 24 percent from 11.69 trillion won (US$9.88 billion) of the preceding half.
By underlying asset, the amount of interest rate linked DLS issuance totaled 5.33 trillion won (US$4.50 billion), taking up the most of the total at 35.3 percent. Credit linked DLS followed with 4.25 trillion won (US$3.59 billion), or 28.2 percent, and hybrid DLS with 2.98 trillion won (US$2.52 billion), or 19.8 percent.
Hana Financial Investment Co. had the highest amount of issuance at 2.57 trillion won (US$2.17 billion), followed by KB Securities Co. at 1.64 trillion won (US$1.38 billion).
The amount of DLS repayments in the first half of this year stood at 13.65 trillion won (US$11.53 billion), up 24.3 percent from 10.98 trillion won (US$9.27 billion) in the second half of last year. Out of the total, early repayments totaled 7.22 trillion won (US$6.10 billion), accounting for 52.9 percent, followed by redemptions at maturity at 5.86 trillion won (US$4.94 billion), or 42.9 percent, and advanced redemptions at 572.30 billion won (US$482.99 million), or 4.2 percent.