NH Investment & Securities has issued 16 derivative-linked bonds (DLBs) with a tenor longer than 15 years through private placements, which derived around KRW560 billion (US$494m) – translating to 93.3% of its total sales of DLB and derivative-linked securities (DLS) in Q1 21.
Family offices in Hong Kong SAR are increasingly using structured products as a risk management tool for portfolios given the ample liquidity in the equity market.
The South Korean bank has entered the ESG space with structured funds linked to sustainable underlyings developed by S&P DJI and Stoxx.
Despite the increase in issuance and sales, the South Korean securities house has slipped down the country’s league table.
The country’s regulator is seeking to reclassify investors, which will enable non-retail investors with reduced net worth to access non-principal-protected notes
Derivative-linked bonds (DLB) have remained more popular than derivative-linked securities (DLS) in the first quarter of 2021 in South Korea despite a drop in sales.
The US index provider is in talks with private banks and broker-dealers to licence its suite of 20 China thematic indices customised for structured products.
The UK bank has launched an institutional service targeting single family offices (SFOs) in Hong Kong SAR and Singapore to provide complex solutions including structured products developed by the investment bank.
The UBS banker will oversee the US bank’s structured products sales team in the region.