South Korean financial regulators will start a probe into sales of derivative products that carry the risk of individual investors losing almost all their money depending on moves in overseas market rates.
Those products include 127 billion won ($105 million) of securities tied to the German 10-year government bond yield, according to a statement from the Financial Supervisory Service. While they offer high returns if the German yield stays above a certain level, the securities expose investors to losses that increase as the yield falls more and more below that level.