A balancing act

The message from South Korea’s largest investors is clear – yield enhancement is still the number one priority as they look to balance assets and liabilities. However, credit derivatives and equity-linked investments are likely to take a greater role in investors’ portfolios. Research and article by Saima Farooqi

South Korea’s largest institutional investors are looking to take greater exposure to structured credit investments over the coming year in their continuing search for yield enhancement. However, domestic regulations are a major impediment to taking on greater credit derivatives exposure, say investors. Meanwhile, a surge in the Korean stock market in the second half of the year has meant that some investors are looking to take exposure to the market through equity-linked investments.

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