The wealth management arm of the French bank is seeking to build up a comprehensive offering in the region
New investments in structured products by South Korea’s institutional investors remain subdued due to their recent sluggish performances coupled with the rising interest rates environment.
The Korea Exchange (KRX) is gearing up to launch a new Environmental, Social and Governance (ESG) principle compliant benchmark next month.
Products linked to interest rates are expected to remain in focus next year in the Asia Pacific region as turbulence in the equity markets continues
Structured products issuance rose 23% in October, despite market uncertainties, with volumes picking up pace to KRW8.5 trillion (US$7.75 billion) – a 26% increase compared to September after sales volumes plunged in July and August following the drop of the Hang Seng China Enterprises Index (HSCEI).
Interest has been growing among Asian investors on products with a market neutral strategy due to the increased volatility seen since the second half of this year. The sales volume of such products, however, remains significantly low, pointing to the high-level of risks and complexity the notes are exposed to.
Increase is expected to neutralise hedging losses
The drastic drop in the redemption volume of equity-linked securities (ELS) in the third quarter of this year in South Korea has left hedging counterparties as well as local securities companies exposed to large losses.