KOFIA Selects 10 Bond Yield Reporting Companies for First Half of Next Year

The Korea Financial Investment Association announced on the 27th that it has selected 10 companies to report the final bond yield quotes for the first half of next year.

The selected companies are KB Securities, NH Investment & Securities, Cape Securities, Meritz Securities, Mirae Asset Securities, Bookook Securities, Leading Investment & Securities, Shinhan Investment Corp., Hanyang Securities, and Korea Investment & Securities. The association selects financial firms with excellent price discovery capabilities as final bond yield quote reporting companies every six months, considering bond trading performance and other factors. SK Securities and iM Securities were excluded, while Cape Securities and Leading Investment & Securities were newly included.

The final bond yield quotes serve as benchmark interest rates in the domestic bond and commercial paper (CP) markets. For 16 types of bonds with high market utilization, such as 3-year government bonds, the 10 reporting companies submit yields, and the average value is calculated and disclosed after excluding the two highest and two lowest extreme values.

The association also selected 10 companies to report the final CP yield quotes for the first half of next year. NH Investment & Securities, Bookook Securities, Mirae Asset Securities, Eugene Investment & Securities, Hanyang Securities, Hyundai Motor Securities, Shinhan Bank, and Hana Bank were included. Compared to the second half of this year, Daol Investment & Securities was excluded, and NH Investment & Securities was newly added.

The final CP yield quotes are used as reference rates for CP transactions. Yields (based on A1 rating, 91-day maturity) are reported by six securities firms and two banks engaged in CP brokerage, and the average value is calculated after excluding the highest and lowest extreme values.