Korea Structured Notes Soar as Lehman Minibonds Bite Hong Kong
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Structured-note sales in South Korea are soaring as individuals pile in, bucking the trend in Asia’s financial hubs, where losses from Lehman Brothers Holdings Inc.’s collapse led to rules that paralyzed the industry.
Issuance in South Korea surged 54 percent to a record 70 trillion won ($64 billion) last year in about 20,000 offerings, including private placements, according to data from Korea Financial Investment Association. That dwarfs 26 comparable products approved for public sales in Hong Kong and two registered in Singapore in 2012, based on listings posted by the two markets’ regulators.