It is likely to purchase AI-grade high-quality bonds for refinancing
(Seoul = Yonhap Infomax) Reporter Jeong Ji-seo Pi Hye-rim = Financial authorities, which promised prompt support to prevent a tight short-term money market, will start executing their first funds next week.
According to the financial authorities and the bond market on the 21st, the bond market stabilization fund (hereinfollowing referred to as the bond fund) will resume purchases of commercial paper (CP) and electronic short-term bonds as early as next week.
To this end, it is known that the financial authorities conducted daily market monitoring and a preliminary understanding of the demand for funds through the market.
Currently, the size of the CP, which is scheduled to expire on this day, is regarding 170 billion won.
Initially, the financial authorities reviewed whether to execute the funds immediately to support the market quickly, but decided to continue the operation of the fund in earnest from next week as the market itself can digest the amount in question.
It is expected that the target of the bond fund purchase will be CP or leaflet bonds with maturities of 3 months or less issued by non-financial companies with an A1 rating or higher.
Among bonds with maturities within two weeks from the issuance date, it is estimated that the amount issued for redemption will be considered for priority purchase.
In addition, the financial authorities are also preparing for a capital call to raise additional financial resources for the fund.
Although the authorities have begun to move in earnest to prevent a crunch in the short-term money market, such as the corporate bond market and CP, concerns in the market remain.
Although the bond fund will operate and provide liquidity to the public bond market, it is difficult to expect to supply funds to the liquid cargo market, which is currently the most problematic.
A brokerage company official said, “I wonder if the current tightness can be alleviated unless ABCP or ABSTB are purchased.”
It is also pointed out that there is a need for clear instructions on who manages the bond fund.
“If the financial authorities do not give clear instructions to the management company, the money will eventually go to a place that is not urgent,” said an official from Securities Company B. “It is difficult for everyone, but there are many places such as construction companies that cannot be procured immediately in the market. Priority is given to the public bond market. If funds are invested, it should be prioritized through tweezers adjustment for vulnerable industries and companies.”
jsjeong@yna.co.kr
phl@yna.co.kr
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This article was served at 08:14, two hours earlier on the Infomax financial information terminal.
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