Hang Seng Indexes has launched its first hedged decrement index targeting structured product issuers in South Korea as Asian investors slowly embrace synthetic dividend underlyings.

The new HSCEI Futures KRW Hedged 3.4% Decrement Index (TR), marks the index provider’s second decrement index following the launch of HSCEI NTR KRW-converted Daily Reset 3.25% Decrement ER Index in August 2019. “[The index] serves as the basis for structured product issuers to design their products and allows for more competitive pricing of the products by removing sensitivity to expensive implied risk parameters such as quanto covariance,” a spokesperson at Hang Seng Indexes