Korea Investment & Securities has sold 400 billion won of US government bonds this year alone

COMPANY / Reporter Kim Jisun / 2024-02-19 02:32:23
 

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] Korea Investment & Securities said on the 19th that the sale of U.S. government bonds to individual investors reached 400 billion won this year.

Analysts say the biggest reason for the popularity of U.S. bonds is that the U.S. Federal Reserve is expected to start cutting its key interest rate this year. Bond prices rise during the rate cut, so if you invest in products based on bonds or bonds as underlying assets, you can expect interest profits as well as profits from sales.

In addition, when investing directly in individual bonds, interest income is taxed, but capital gains and foreign exchange gains are tax-free. This is because direct investment in bonds is more advantageous than related Exchange Traded Fund (ETF) considering costs and taxes for high-value assets subject to comprehensive financial income taxation.

Korea Investment & Securities is selecting and selling low coupon U.S. bonds with a surface interest rate of less than 1% in consideration of this investment trend and the U.S. bond market, which has abundant liquidity compared to the domestic market.

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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