Samsung Securities Opens Online Trading System for Short-Term Bonds

[Asia Economy Reporter Park Jihwan] Samsung Securities announced on the 4th that it has opened a system that allows trading of short-term bonds online.

Short-term bonds are bond products mainly issued and circulated electronically by companies for short-term funds with maturities of less than one year, rather than in physical form. They are commonly called "Jeondanchae" (electronic short-term bonds).

The short-term bonds sold online by Samsung Securities are products with maturities within 3 months and a rating of A2 or higher. Interest rates vary depending on the bond rating, and the minimum subscription amount is 100 million KRW based on face value.

As of the 2nd, the short-term bonds sold by Samsung Securities have 22 to 86 days remaining until maturity. The pre-tax yield is 1.15% to 1.35% per annum. According to the Financial Supervisory Service's integrated financial product comparison disclosure, the market interest rate is around 0.35% to 1.06% per annum (6-month basis).

Park Juhan, head of the bond product team at Samsung Securities, explained, "Short-term bonds are products with the stability of bonds that pay principal and interest if held until maturity and have a short maturity, resulting in a high reinvestment rate. They will also be an excellent alternative for public offering investors who mainly operate funds short-term."