Woori Bank DLF ‘First Full Loss’

Overseas interest rate-linked derivative-coupling funds, which are controversial in terms of large-scale loss of funds, are nearing expiration. An investor with 100 million won has only returned 1.9 million won, and a lawsuit has also begun to compensate the damage.

The final confirmed loss on principal is the German Treasury Bond DLF sold by Woori Bank.

If German 10-year bond yields fall below negative 0.3%, losses begin to occur, and below negative 0.6%, all of the principal is lost.

On the 24th, the benchmark date for the fund’s yield, the 10-year German government bond yield was negative at 0.619%, confirming the total loss of principal.

48 people have joined the fund and their total investment is KRW 8.3 billion.

They pay back only 1.9% of their investments with minimal commitments and settlement of administrative costs.

Earlier, the Woori Bank DLFs, which expired on the 19th and 24th, suffered a loss of 60%.

The first maturity among the foreign bond yield-linked DLFs sold by Hana Bank also confirmed a loss of 46.1%.

Among these, a lawsuit was filed asking the bank to reimburse principal and interest on four investments in Hana Bank and Woori Bank’s DLF.

Woori Bank and Hana Bank’s DLF is expected to reach KRW 170 billion, which is due within the year.

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Woori Bank DLF 'First Full Loss' - /10

Summary

Overseas interest rate-linked derivative-coupling funds, which are controversial in terms of large-scale loss of funds,

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