South Koreas financial institutions suffered insolvency of asset-backed commercial papers Friday at midnight, following a Chinese firms default on payments due for bonds.
The ABCPs were backed by dollar-denominated bonds worth $150 million that were declared insolvent Thursday. This accounts for some 7 percent of all bonds issued by CERCG Overseas Capital, a Hong Kong subsidiary of China Energy Reserve & Chemicals Group.
ABCPs refer to short-term money-market securities collateralized by other financial assets.
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| (Yonhap) |
The securities have attracted investments from nine Korean institutions — Hyundai Motor Securities, BNK Securities, KB Securities, KTB Asset Management, Busan Bank, Yuanta Securities Korea, Shinyoung Securities, Gol…
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