SG offers won hedged indexes for Korean autocall clients

Local currency benchmarks cut forex hedging cost for clients and boost yields, bank says

Korean retail structured product dealers have always faced a currency risk problem: the products are denominated in won, but are linked to baskets of offshore indexes that settle in a range of currencies. Societe Generale believes it has found a way to sidestep this risk and possibly boost yields, in a bid to tempt back investors left jittery about recent stock market falls.

The French bank, in partnership with three index administrators, launched won-denominated versions of the three most