Korean ELDs fall out of favour

Volumes in Korea’s equity-linked deposit market have dropped off significantly, just months afterhitting their peak and a year after the product was approved for the country’sretail investors. And bankers reckon that volumes will continue to remain inthe doldrums, with a drop in interest rates and a surge Korean equity marketsmaking it increasingly difficult to structure equity-linked deposits with enticingupside potential.

Banks were first granted authorisation to offer equity-linked deposits