"Catch the Bond Ants"... KTB Securities Sells 80 Billion Won Monthly-Payment Bonds
[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities, a subsidiary of Korea Financial Group (President Jeong Il-moon), announced on the 25th that it has strengthened its bond lineup, including monthly payment bonds and high-quality long-term bonds.
On the 24th, Korea Investment & Securities began selling monthly payment bonds worth 80 billion KRW from Lotte Capital, M Capital, and OK Capital. They plan to continuously supply monthly payment bonds with various maturities and yields in the future.
Starting next month, in preparation for potential interest rate declines and economic recession, they will also expand the supply of high-quality long-term bonds such as AA-rated bank holding company hybrid capital securities.
Monthly payment bonds have recently attracted attention from investors seeking stable cash flow due to high interest rates. In particular, demand has increased as they are considered a useful investment tool for retirees who need regular cash flow after retirement. The yields on high-quality corporate bonds have also entered the 4% annual range, higher than market interest rates, attracting strong buying interest.
Investor accessibility to bond investments has also been improved. Processes have been established to enable easy bond investment through non-face-to-face channels such as the website and mobile. The goal is to sell more than 1 trillion KRW worth of bonds through non-face-to-face channels this year.
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Kim Seong-hwan, Head of the Individual Customer Group, said, “Bond investment, once considered exclusive to high-net-worth individuals and institutional investors, is spreading to general individual investors, diversifying customer demand. We will meet customer needs with a differentiated product lineup and investment convenience, solidifying our position as the number one in bond sales.”
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