[Edaily Marketin KIM YEON-SEO Reporter] While the corporate bond issuance market as a whole is facing headwinds amid persistently high interest rates, major securities firms are moving ahead with public bond offerings one after another. This is because profitability in the securities industry has improved thanks to a strong stock market, and the need to secure operating capital has grown as funds flow into the stock market.

According to the investment banking (IB) industry on the 24th, SamsungSecurities, MIRAE ASSET SECURITIES, and Shinhan Investment Securities are planning to issue corporate bonds totaling up to 1.5 trillion won in July.

First, SamsungSecurities, which holds the highest credit rating of “AA+,” is preparing to issue corporate bonds worth up to 6000억 won. SamsungSecurities plans to conduct a bookbuilding process for a total of 3000억 won—comprising 1000억 won in 2-year bonds, 1500억 won in 3-year bonds, and 500억 won in 5-year bonds—and then increase the issuance to a maximum of 6000억 won depending on the results.

The target yield band has been set at –30 to +30 basis points (bps; 1 bp = 0.01 percentage point) relative to the rates of individual private bond rating agencies. The bookbuilding is scheduled for July 2, and the issuance is set for July 10. The lead underwriters are NH INVESTMENT & SECURITIES, KB Securities, Korea Investment & Securities, Shinhan Investment & Securities, DaishinSecurities, and SKSecurities.

MIRAE ASSET SECURITIES (AA0) is conducting a book-building process for a total of 2000억 won, comprising 1000억 won in 2-year bonds and 1000억 won in 3-year bonds. Depending on the results of the book-building, the issuance amount may be increased to a maximum of 4000억 won. The target yield band is –30 to +30 basis points relative to the individual market average. NH INVESTMENT & SECURITIES, KB Securities, SKSecurities, Hana Securities, Shinhan Investment Securities, and SamsungSecurities are serving as lead underwriters. The book-building period is July 6, and the issuance date is July 13.

Shinhan Investment Securities (AA0) is also planning to issue corporate bonds totaling 3000억 won, comprising 2000억 won in 2-year bonds and 1000억 won in 3-year bonds. The maximum issuance amount is 5000억 won. The target yield band was set at -30 to +30 basis points relative to the individual market average. NH INVESTMENT & SECURITIES and SamsungSecurities are serving as lead underwriters, with the bookbuilding scheduled for July 8 and the issuance set for July 16.

Analysts attribute securities firms’ active pursuit of corporate bond issuance—despite uncertainties such as interest rate hikes and deteriorating investor sentiment—to the convergence of a booming stock market and demand for investments in high-quality bonds. As expectations for earnings from brokerage (commission-based sales), financial product sales, and asset management grow, driving up securities firms’ funding needs, this aligns with the demand for stable returns from investors seeking to invest in large companies with high credit ratings.

As stock market trading increases, the scale of assets that securities firms must manage—including customer deposits, credit facilities, accounts receivable, and settlement-related funds—also expands. In this process, firms secure liquidity in the short term through commercial paper (CP) and electronic short-term bonds, while in the medium to long term, they issue corporate bonds to secure stable operating funds.

Corporate bonds, in particular, have longer maturities than short-term funding sources, making them advantageous for securities firms in stabilizing their funding maturity structure. It is interpreted that this move is not merely a response to the temporary increase in funding demand caused by the strong stock market, but also aims to establish a long-term funding base to support the expansion of new businesses—such as the issuance of commercial paper—and asset growth.

Choi Seong-jong, an analyst at NH INVESTMENT & SECURITIES, explained, “Given the recent strength of the stock market, securities firms are also raising the necessary funds through the corporate bond market,” adding, “As business conditions in the securities industry improve, investors are viewing the sector positively, creating a favorable environment for securing investor demand during bookbuilding.”

Kim Sang-in, an analyst at Shinhan Investment Securities, said, “It appears that securities firms’ funding needs have increased due to a strong influx of capital into the stock market.” He added, “However, corporate bond issuance is largely intended to secure stable business and operating funds over the medium to long term, rather than simply securing short-term liquidity.” He added, “Since a significant portion of securities firms’ asset growth is linked to capital flows in the stock market, this can be viewed as a move to stabilize their maturity structure through long-term financing.”