South Korean insurers’ adoption of KOFR-based interest rate swaps to hedge fixed-rate insurance liabilities is expected to accelerate KOFR market development, as current IRS transactions remain dominated by CD rates despite regulatory efforts to promote KOFR as the risk-free benchmark.
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#YonhapInfomax #KOFR #InterestRateSwap #InsuranceLiabilities #CDRate #RiskFreeRate #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=83367
[Insurance Companies Derivatives ALM③] 'KOFR Market Activation'—The Ripple Effect of IRS Hedging
South Korean insurers’ adoption of KOFR-based interest rate swaps to hedge fixed-rate insurance liabilities is expected to accelerate KOFR market development, as current IRS transactions remain dominated by CD rates despite regulatory efforts to promote KOFR as the risk-free benchmark.