A-rated Corporate Bonds Successfully Issued
A-rated as well as AA-rated corporate bonds have been successfully issued, in spite of the economic impact of COVID-19, to give more leeway to the government in terms of bond market support. With leading companies’ bonds successfully handled in the market, the government’s bond market stabilization fund, which totals three trillion won in the first stage and is scheduled to reach 20 trillion won in total, now can be invested with more flexibility.
The target of the government’s fund is AA-rated corporate bonds and it is pointed out that the fund does not have to be mobilized in a hurry as corporate bonds with high ratings are handled well in the market. “The corporate bond market is working well in spite of concerns over an economic crisis,” said a bond market expert, adding, “The bond market stabilization fund should be mobilized only when the market malfunctions and now is not that time with orders to buy in excess in the blue-chip corporate bond market.”
Examples of corporate bonds successfully sold recently include AA-rated bonds of SK Energy and GS and A-rated bonds of Poongsan and Hyundai Autron. The bond market stabilization fund recently placed orders for the three-year bonds of SK Energy and GS.