Structures with full capital protection have become unprecedently popular in five years as regulatory restrictions on risky products take effect and the pandemic hits the markets.
In the second part of our analysis of the South Korean market we look at key metrics on DLS and DLB structures with a five-year frame to see the impact of the new guidelines introduced by domestic regulators following the mis-selling incident in the fall of 2019. Derivative-linked bonds (DLB) have turned an attractive alternative featuring full principal protection as derivative-linked securities (DLS) take a heavy toll from the tightened restrictions in the aftermath of the mis-selling scandal
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