Bonds
Goldman, BNP See Korean Convertible Boom as Shorting to Resume
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South Korea may see a wave of convertible bond issuance once a short-selling ban is lifted soon, thanks to the likely return of hedge funds that are major buyers of the hybrid debt.
A senior banker at Goldman Sachs Group Inc. and money managers at BNP Paribas SA and Lombard Odier Investment Managers are among those projecting a jump in convertible issuance, which dried up in the wake of Korea’s shorting ban in late 2023. The drop was particularly acute in dollar convertibles, popular among global arbitrage investors who typically buy the debt while shorting the underlying stock.