Interest rate hike due to stock market slump ‘Money flows into bonds’

[팍스넷뉴스 백승룡 기자] As interest rates have risen steadily since the beginning of the year and the stock market has been sluggish for a long time, funds that have not been able to find an investment destination are rapidly being absorbed into the bond market.

Korea Investment & Securities announced on the 21st that the total number of bonds sold from January this year to the 15th of this month was 16.3 trillion won. “The total amount of bond sales last year was around 22 trillion won,” Hanto Securities explained.

In particular, there is an explosive demand for high-quality bonds. The bonds ‘Hyundai Motor 317-1’ (AA+ grade, 4.0% a year) and ‘Kia 283-1′ (AA grade, 4.1% a year) sold by Hanto Securities on the 15th were 20 billion won and 250 billion won, respectively, within one minute of the sale. Billions of dollars sold out. It is interpreted that investors’ interest has surged as stable profits can be expected in a highly volatile market environment, and even trading profits can be made when bond interest rates fall.

In line with the growing demand for bonds, Hanto Securities is supplying various types of bond products, from retail bonds to overseas bonds. Hantoo Securities, which is continuously discovering high-yield bonds with a maturity of one year (A-grade) of 5% or more, plans to strengthen its product lineup by launching high-grade subordinated bonds and perpetual bonds with an annual interest rate of 5-6%.

Previously, Hantoo Securities signed an overseas bond advisory agreement with Credit Suisse, a global investment bank, last year, and has been supplying a variety of overseas bonds to Korea, including bonds from European mega-banks such as HSBC Holdings and UBS.

Kim Seong-hwan, head of Hantoo Securities’ individual customer group, said, “It is the role of a brokerage firm to discover opportunities in crisis and provide investment directions to customers. said.

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