SEOUL, Jan. 5 (Korea Bizwire) — Sales of equity-linked securities (ELS), including equity-linked bonds (ELB), jumped last year, thanks to a bull run in stock markets, industry data showed Friday.
The issuance of ELS and ELB products stood at a record 81.1 trillion won (US$76.4 billion) last year, up 64.2 percent from the previous year, according to the data by the Korea Securities Depositary Corp. (KSDC).
In the fourth quarter of last year, the issuance of ELS and ELB stood at 27.3 trillion won, up 51.1 percent from a year ago, the data showed.
ELS refers to hybrid debt securities whose returns are determined by the performance of underlying equities.
ELS products track benchmark stock indexes, including the Korea Composite Stock Price Index (KOSPI) 200, as underlying assets.
South Korea’s main stock index jumped about 20 percent last year, buoyed by healthier earnings from big technology companies.
Despite lingering tensions over North Korea’s provocative behaviors, the Korea Composite Stock Price Index reported its largest annual gain in seven years last year.