Soonghee Lee Since equity-linked securities (ELS) were first introduced to the Korean capital market in 2003, the market has grown to over W20 trillion ($17.8 billion) in annual issuance. Among the ELS products are principal-protected products and non-principal protected products, internal hedge structures and back-to-back hedge structures. In general, although it depends on the products, the principal and a fixed rate of return are paid to investors if the stock prices of the underlying assets of ELS maintain a certain level on the early redemption date or at maturity.
November 09 2010