Mirae Asset Securities said on Oct. 20 that it will launch the "won-denominated bond online special-rate promotion," offering special preferential rates on short-term government and public bonds.
The event targets government and public bonds with a remaining maturity of 3 to 5 months. Through this promotion, investors can receive an annual pre-tax rate that is 1.00 to 1.20 percentage points higher than the existing purchase rate of the same bonds. On a bank-equivalent yield basis, that comes to 3.60% to 3.75% per year (based on individual taxpayers at 15.4%).
The total amount is 28 billion won at face value, and the daily sales limit is about 1 billion won. The event ends when the limit is exhausted.
The eligible bonds and purchase rates to which the event applies can be checked at 10 a.m. every day in the Mirae Asset Securities mobile trading system (MTS) M-STOCK under the menu "Products > Bonds > Find OTC bonds." However, because won-denominated government and public bonds change in price daily with market rates, the yield to maturity may vary depending on the time of purchase. There is a possibility of principal loss in the event of early redemption.
A Mirae Asset Securities official said, "Government and public bonds are issued by the government and public institutions and are high-credit bonds, so they will be a good investment alternative for investors seeking balanced asset allocation while preparing for market uncertainty," adding, "We will continue to introduce competitive products that can contribute to customers' successful asset management."