Shinhan Investment Corp. Launches 5 Maturity-Matching Bond ETNs

The Korea Exchange announced on the 4th that it plans to newly list five securities, including Shinhan Investment Corp.'s ‘Shinhan 26-05 Bank Bond (AAA) ETN,’ on the KOSPI market on the 5th.

The newly issued ETNs include five products that allow investment with 1x and 2x leverage in bank bonds (AAA) and public bonds (AAA), respectively, as well as a product that adds a contractual spread (pre-tax annual 10bp) to the yield of 10-year government bonds.

According to the index calculation method of NICE P&I, five securities (three government bonds) that meet the inclusion criteria were included in equal face value weight.

The bonds composing the index will not be replaced until the ETN matures. However, if the outstanding issuance amount falls below 50 billion KRW before maturity or if the credit rating declines, the relevant security may be excluded and a new security matching the composition criteria may be included.

Additionally, this product follows a total return index (TR) method, automatically reinvesting the interest income of the index constituent bonds into the index instead of distributing it as dividends.

The ETNs sold are not protected under the Depositor Protection Act, and losses of principal (0?100%) may occur due to asset price fluctuations, credit risk, etc., with such losses borne by the investors.

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