Tritonix.ai

News / Korea / yonhap_finance

Shinhan Securities: IMA Market Hits 4 Trillion KRW, But Impact on Corporate Bonds Remains Limited

Finance · Investment Banks/Brokers · yonhap_finance · 2026-08-26

005940, 006800, 016360

Shinhan Securities reports that despite the growth of the IMA market to 4 trillion KRW, the benefits to the lower-rated corporate bond market remain minimal due to current investment allocations.

What Happened

IMA Market Growth: The securities industry's Integrated Management Account (IMA) market has grown to over 4 trillion KRW. However, contrary to initial expectations, the influx of funds into the corporate bond market, particularly for lower-rated credits, has been limited.

Asset Allocation Bias: Korea Investment & Securities, which holds a 76.8% market share, invests the vast majority of its assets in loans and beneficiary certificates, with corporate bonds accounting for only 0.9%. While other firms have higher bond allocations, their smaller deposit bases limit their overall market impact.

Market Constraints: Due to a decline in corporate bond issuance and high interest rate volatility, securities firms are likely to prioritize other corporate finance assets over bonds for new IMA funds. Retail investors are also increasingly shifting toward higher-rated, safer debt instruments.

Investment Strategy: Significant improvements in demand for lower-rated corporate bonds are unlikely in the near term. Investors are advised to adopt a conservative approach for A-rated or lower bonds, focusing on interest rate risk management rather than relying on potential IMA fund inflows.

Read original

More in Finance

Legal Counsel Defends Fed Governor Lisa Cook Against Trump Removal Efforts

Finance · cnbc · 2026-08-27

Attorneys for Federal Reserve Governor Lisa Cook have formally challenged President Trump's renewed attempts to dismiss her, citing a lack of legal grounds.

Analysts Raise Yuanta Financial's Price Target to NT$59.9 in Latest FactSet Survey

Finance · cnyes · 2026-08-27

A recent FactSet survey shows analysts have raised the median price target for Yuanta Financial (2885-TW) to NT$59.9, reflecting a 4% increase.

2885

TSX Reaches Record Highs as Energy and Mining Gains Outpace Trade War Concerns

Finance · globe_inside_market · 2026-08-26

The S&P/TSX Composite Index continues to climb despite new U.S. trade tariffs, driven by strong performance in the energy, materials, and financial sectors.

Latest in Korea

KOSPI Surges Over 2% in Early Trading, Eyeing 7,000 Milestone

yonhap_finance · 2026-08-27

The KOSPI index jumped more than 2% in early trading on the 27th, reclaiming the 6,900 level and pushing toward the 7,000 mark.

Hana Securities Urges SK Innovation to Strengthen Shareholder Returns Post-Merger

Energy Minerals · yonhap_finance · 2026-08-26

Hana Securities analyzes SK Innovation's merger with SKIET as a defensive move to mitigate financial risks, while calling for clearer shareholder return policies.

096770

Analysts Divided Over Hyundai Motor's Stance on Shareholder Returns

Consumer Durables · yonhap_finance · 2026-08-26

Hyundai Motor's decision to maintain its current shareholder return policy has sparked debate among analysts regarding the need for a shift in strategy.

005380

Nvidia's Earnings Beat Sparks Optimism for Semiconductor Sector Recovery

Electronic Technology · yonhap_finance · 2026-08-26

Nvidia's strong quarterly performance has boosted investor sentiment for semiconductor stocks, with experts anticipating a rebound for major memory chipmakers.