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Doing a thread on these Korean Structured Products
And the unintended market effects of these ... cases where tail wags the dog.
First do listen to the excellent podcast (#OddLots is the best Fin Markets podcast by @TheStalwart & @tracyalloway here they speak to @bennpeifert)
And the unintended market effects of these ... cases where tail wags the dog.
First do listen to the excellent podcast (#OddLots is the best Fin Markets podcast by @TheStalwart & @tracyalloway here they speak to @bennpeifert)
@TheStalwart @tracyalloway @bennpeifert So the main point is the rising amount of savings in East Asia (Korea, Japan) which leads to investments in Structured Products. (They had a similar podcast with @Brad_Setser on Taiwanese Lifers - though more focussed on USDTWD hedging)
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@TheStalwart @tracyalloway @bennpeifert @Brad_Setser Bottom line is - East Asia has a large pool of savings, and needs to be invested some where.
Bonds provide a very low return (global QE pushed down yields), and stocks have too much market risk & volatility.
Enter #StructuredProducts = Bond like coupons, but Stock type returns
Bonds provide a very low return (global QE pushed down yields), and stocks have too much market risk & volatility.
Enter #StructuredProducts = Bond like coupons, but Stock type returns
