OPINION
Publication date May. 30, 2023
Our bi-weekly Opinion provides you with latest updates and analysis on major capital market and financial investment industry issues.
OPINION
- Challenges for Eradicating OTC Derivatives-based Illegal Transactions [Senior Research Fellow] Lee, Hyo Seob
- In the aftermath of the SG Securities scandal, some argue that CFDs should be removed from the market. CFDs are OTC derivatives based on private contracts. If investment in CFDs is prohibited, investors may flock to new types of OTC derivatives, such as TRSs and new margin trading, which could cause a more serious problem. As Korea has tightened the regulation on OTC derivative...
- The US Bank Crisis in March and a Look Ahead [Research Fellow] Jang, Bosung
- In March 2023, some small and medium-sized US banks came to fail, which has put strains on global financial markets. An empirical analysis finds that when a negative US financial shock hits, stock prices fall in Korea while the spreads between corporate and government bond yields and between CP and call rates are on the rise. In particular, the interest rate spreads tend to wid...