KIS Pricing - Asset Pricing

Introduction

CD (Certificate of Deposit)
- Savings certificate with a fixed maturity date and specified fixed interest rate
- Restrict access to Funds until maturity
- Any one with certificate can redeemed the funds at the end of maturity date
- CD91 rate is one of the reprehensive short-term interest rate that KOFIA announce
- Major index rate on Market yield inked loans, flowing rate bonds, IRS(Interest Rate Swap) and etc.
CP(Commercial Paper)
- In general, a firm with good credit status issues a credit note based on self-credit in order to raise short-term funds such as working capital
- Classified as promissory notes under the legislation
- Distinction from promissory notes for commerce
ESTB(Electronic Short-Term Bond)
- Staring to Issue from JAN 2013, To complement the disadvantages of CP and to replace CP
- It has same characteristics as CP
- Issued electronically rather than physical note.
- Improved the disadvantages of CP, by publishing/disclosing detail information and distribution information

inform of Classification(introduced, Characteristic, Legal Characteristic, Issuer, Investor, Finance intermediary, Maturities, Min. Amount, Interest, interim repurchase), CD, CP, ESTB
Classification	CD	CP	ESTB
introduced	May 1974	Aug. 1972	Jan. 2013
Characteristic	short-term financing for banks	short-term financing	short-term financing
Legal Characteristic	Bailment subject to consumption	Promissory notes, Debt Securities	Bond
Issuer	deposit bank	Enterprise	Enterprise
Investor	Financial institution	Financial institution, Corporation, Individual	Financial institution, Corporation, Individual
Finance intermediary	Securities, investment Bank, Money Brokerage	Securities, investment Bank	Securities
Maturities	Min. 30 days	No limitation	Max. One Year
Min. Amount	No limitation	Securities firm: KRW 100 Mill, Others: No limitation	KRW 100 Mill.
Interest	Discount, 부리식	Discount, 부리식	Discount
interim repurchase	Not allowed	No limitation	No limitation

inform of ABCP(Asset-Backed CP), ABSTB(Asset-Backed ESTB)
ABSTB(Asset-Backed ESTB)
ABCP(Asset-Backed CP)	ABCP & ABSTB is issued by SPC(Special purpose Company) to rise capital in consideration of the underlying assets or future cash flows of a corporation or financial institutions Funding through ABCP / ABSTB is preferred because it provides off-balancing effects for issuing companies and allows for flexibility in funding through continuous repayment at short-term interest rates.

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KIS 채권평가 - Beyond Pricing