Convertible Bonds Dry Up in South Korea With Short Sales Ban
- Demand for convertibles plunged since ban on shorting started
- Equity-linked notes became funding option for Chinese firms
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South Korea’s short-selling ban has damaged sales of a popular source of capital for local companies: convertible bonds.
After steady growth in the amount garnered selling the notes for three quarters through September, the value raised from then until June was the lowest in two years excluding private placements, according to data compiled by Bloomberg.