South Korean Won: Equity rout drives downside hedging – MUFG

What happened: MUFG's Michael Wan says a sharp sell-off in South Korean equities has boosted demand for South Korean Won downside protection, with the KOSPI falling heavily led by semiconductor names. Key numbers: None. Why it matters: KRW risk reversals show investors paying more for protection, consistent with sizeable foreign equity outflows and related Won selling.

MUFG's Michael Wan says a sharp sell-off in South Korean equities has boosted demand for South Korean Won downside protection, with the KOSPI falling heavily led by semiconductor names.

KRW risk reversals show investors paying more for protection, consistent with sizeable foreign equity outflows and related Won selling.