The total balance of equity-linked securities (ELS) and derivative-linked securities (DLS) has amounted to KRW100.9 trillion (US$91 billion) following an upward trend of major stock markets as of 30 September, down KRW6.7 trillion from a quarter ago.
Early repayment increased by 1.4x to KRW15.8 trillion in Q3 20 while new issuance stagnated at KRW16 trillion due to lower investor demand, according to a report from the Financial Supervisory Service (FSS). The proportion of self-hedging securities, which had been on a steady rise, stood at 57.8% as of the end of September, down 1.6% quarter-on-quarter, as some leading securities houses reduced their hedging weight following the March 2020 market crash. ELS ELS
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