Running for covered
A capital plan
Sound economic fundamentals have meant South Korea’s sovereign bond yields have remained low despite the political standoff on the Korean peninsula.
The cost of credit protection on the US and New Zealand's national debt reached all-time highs in early trading this morning, while Japanese corporates faced declining market sentiment.
Dutch bank ABN Amro signed an agreement on June 26 to provide Korean firm Woori Investment & Securities with fixed-income derivatives expertise, including intellectual capital, product capability and IT systems.
Korea’s Woori Bank, the country's second largest bank, has signed an agreement with Reuters to use Kondor+ as its risk management tool for derivatives and bond transactions.
Three additional securities firms have received authorisation to trade over-the-counter (OTC) derivatives in South Korea following regulatory changes last July that opened up the OTC derivatives market to the country's securities houses.
South Korea’s Dongwon Securities has hired BJ Kim, an ex-JP Morgan Chase banker, as executive vice-president to boost the firm’s over-the-counter derivatives capabilities. Previously, Kim was head of credit markets at JP Morgan Chase in Seoul.
The requirements of the new Basel Accord are prompting some banks in Asia to begin implementing sophisticated credit systems, but there are still some obstacles to overcome.