Mid-Weekly: Vol Catalysts Spied, Split Grows In Korean ELS Market

Volatility is the lowest it’s been in about 20 years, but this could change very quickly, particularly with three notable catalysts on the horizon. While the U.S. election and the potential for further rate rises are pretty well known, some investors may not be watching for incoming changes to money market funds, which also have the potential to inject greater market uncertainty. Also this week, we look at how Korean securities brokers are at odds over the direction of equity-linked securities issuance in the country in 2017. Diversification in underlyings and a greater drive from retail clients to move their cash from unattractive deposits into higher yielding investments and products are seen as key to autocall growth there.