Issuance reduction due to financial market uncertainty
Use of short-term bonds with lower credit rating X
<대한금융신문=박진혁 기자> The size of short-term bond issuance, which has increased every year since its inception in 2013, declined for the first time last year.
The Korea Securities Depository (STB) announced on the 12th that the amount of financing through short-term bonds (STBs) last year was 1031 trillion won, down 8.3% from 1124 trillion won last year.
The average issuance amount on business days was 4,110 trillion won, down 500 billion won from the previous year.
It is analyzed that the decrease in the issuance of ultra-short products within 7 days due to uncertainty in the short-term financial market due to Corona 19.
By type, general short-term bonds were issued with KRW 83.6 trillion, down 11.4% from last year’s 938 trillion won, and securitized short-term bonds, up 7.4% from 186 trillion won last year, KRW 20 trillion.
By maturity, the amount of issuance within 3 months decreased by 8.3% from 1121 trillion won in the previous year to 1028 trillion won, accounting for the majority of the total issue volume (99.7%).
After 3 months, it is analyzed that the burden of various office work and expenses occurs as the main factor.
Issuance by credit rating decreased in the order of A1, A2, A3, B or lower.
It is analyzed that there is no significant change in the preference for safe asset investment, as the A1 grade issuance amount is 94.2 trillion won, accounting for 91.8% of the total issuance.
In all grades, issuance volume decreased compared to the previous year, of which A3 grade issuance decreased 27.7%, the largest decrease.
The amount of issuance by industry was 577 trillion won for securities companies, 20 trillion 700 trillion won for securitization companies, 16.5 trillion 900 billion won for other financial businesses such as card and capital, and 86.900 billion won for general and public enterprises.
Among the securitized short-term bonds, AB short-term bonds were issued 104.4 trillion won, down 2.2% from 10.6 trillion won last year, but PF AB short-term bonds were issued 96.3 trillion won, up 20.4% from 80 trillion won in the previous year.
Short-term bonds are bonds issued by companies with certain requirements such as issuance of less than 1 year and issuance of 100 million won or more, and are issued, distributed, and exercised by the author through an electronic registration agency. The short-term bond system was introduced in 2013, and in accordance with the implementation of the electronic securities system in 2019, the name of the former electronic short-term bond was changed to a short-term bond.
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