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ELS sales jump on brisk stock markets

All News 10:04 December 31, 2017

SEOUL, Dec. 31 (Yonhap) -- The issuance of equity-linked securities (ELS) soared this year on the back of bullish stock markets at home and abroad, industry data showed Sunday.

The issuance of ELS products stood at 64.8 trillion won (US$60.6 billion) this year, up 87.8 percent from the previous year's 34.52 trillion won, according to the data from the Korea Securities Depositary Corp. (KSDC).

ELS refers to hybrid debt securities whose returns are determined by the performance of underlying equities.

ELS products track benchmark stock indexes, including the Korea Composite Stock Price Index (KOSPI) 200, as underlying assets.

ELS sales jump on brisk stock markets - 2

The surge in the sales of ELS was attributed to the bull run of the domestic and overseas stock markets, as well as investors' reinvestment of money redeemed early.

The amount of early redeemed ELS came to 75.68 trillion won this year, sharply up from last year's 27.55 trillion won, on hikes in domestic and major global stock indexes.

Next year, the issuance of ELS is expected to rise as well in tandem with bullish stock markets at home and abroad.

ELS sales jump on brisk stock markets - 1


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