Low rates to favour equity-linked securities in South Korea this year
The popularity of equity-linked securities is set to remain strong in South Korea as investors seek yield enhancement to combat low interest and deposit rates
Low interest and deposit rates are set to boost the equity-linked securities (ELS) market further this year, with the bulk of the demand coming from yield-hungry retail investors.
"[Over the past year] the main demand came from retail investors," says Harold Moon, managing director, head of structured equity derivatives at Nomura, Korea, in Seoul.
"We saw a pick-up in ELS activity in November and retail investors started investing again, especially because the product in Korea has a step-down
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