Korean corporate debt issuers call it a day after second rate hike

[Graphics by Song Ji-yoon]

Book closure arrived in the Korean debt market earlier than the usual this year on soured sentiment from faster-than-expected increases in interest rates.

According to financial investment industry sources, debt issues for December stopped at 231.7 billion won ($197.04 million), just 10 percent of last month’s offering of 2.24 trillion won of last month and nearly 80 percent off from 1.15 trillion won of a year-ago period.

The yield on unsecured three-year AA- hovers above 2.4 percent while the lower-grade BBB- yields around 8.3 percent following two hikes in the benchmark rate.

The Bank of Korea raised the base rate for the second time in the second half to 1.0 percent in November and implied another hike in January.

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