[Korea hyerin nine financial newspaper reporters] to restart the financial authorities' bond market stabilization fund "City take emergency basis after the US corporate bond market interest rates. When rising US interest rate hike in the wake domestic market interest rates sharply, we believe that it can not rule out the possibility that the supply and demand situation to deteriorate throughout the corporate bond market.
16 days FSC and FSS jointly held a joint meeting risk inspection, to discuss the policy direction to respond to the US rate hike.
This is where jeongeunbo FSC vice chairman said, "If the bond market, bond market crunch deepened the insecurity that such superior grades will be expanded to immediately restart the bond market stabilization fund last year, completing the preparation.
For March, while US interest rates are likely to increase sharply, the domestic corporate bond yields and government bond yields were slightly elevated. Based on 3-year government bond yields had surged after the US presidential election 33.5bp, 9.0bp subjected rose during the year 11.7bp, March. In the case of corporate bonds (AA-) interest rate, based on corporate bonds it surged after the US presidential election had expired three years 23.4bp, 10.2bp rose during 3.8bp, in March this year subjected.
The credit spread between government bonds and corporate bonds has stopped rising slightly, such as a generally stable situation than to fall just before the US presidential election. However, if interest rates were to rise sharply in the domestic market, the US rate hike, there are demand and supply situation may worsen throughout the corporate bond market.
Financial Services Commission plans to resume this case the bond market stabilization fund. Bond market stabilization fund was first composition in order to provide liquidity to companies experiencing financial difficulties when the global financial crisis in 2008.
The current financial crisis is the state signed 84 agreements with financial institutions is completed. If the bond market stabilization fund can reactivate the decision to mobilize more than 10 trillion in capital call (Capital Call · funding as needed) basis.
FSC official said that "if necessary Sudan plans to expand the fund to more than 10 trillion saying, 'bond purchases will proceed to the superior central water emergency response plan prepared in accordance with the existing"
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