It is reported that the bank drastically lowered the cost of leveraged investment in SK Hynix Korean stocks

Comparative news, according to Kim Ju's report, after SK Hynix went public in the US and AI-related stocks experienced a sharp decline, the financing costs for global investors to make leveraged investments in SK Hynix Korean stocks have been cut in half in recent weeks. According to people familiar with the matter, a number of banks, including Bank of America, Citigroup, Goldman Sachs Group, and J.P. Morgan Chase, are offering customers an increase of about 150 to 300 basis points on the Guaranteed Overnight Financing Rate (SOFR) to obtain exposure to SK Hynix Korean shares through swap transactions. In mid-June of this year, for customers who wanted to establish a new SK Hynix swap contract or renew their offer, some banks once increased by more than 1000 basis points in SOFR. Since May 1, the SOFR has been fluctuating between 3.50% and 3.69%.

Previously, in order to allocate a limited amount among customers to meet the demand for additional SK Hynix swap transactions, banks offered extremely high financing interest rates, and even directly rejected customer requests under certain circumstances. At the time, the AI boom boosted SK Hynix Korea stock's cumulative 11-fold increase in the 12 months up to June 22. As market sentiment becomes extremely bullish, banks are worried that their portfolios will be overly focused on such stocks, which in turn will drive up their financing costs in the repurchase market. According to people familiar with the matter, some banks that previously rejected customer requests are now actively seeking new business.