Structured hybrid products prove popular in Korea
Complex fixed-income structures and hybrid products are finding an increasing significance among regional investors, with demand coming from private individuals, macro asset managers and sovereign wealth funds. The Asian market is estimated at $50 billion, with South Korea a particularly active market for exotic hybrids.
As interest rates in many developed economies have fallen and stabilised at low levels during the past year, emerging market Asian fixed-income instruments have become increasingly popular with investors. Notably, fixed-income desks around the region are finding hybrid structures are back on the menu with global macro asset managers, hedge funds and private banks. One dealer says even sovereign wealth funds are active investors in fixed-income structures.
Credit hybrids layered with currency
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