As expectations grow for an interest rate hike in the second half of the year, brokerages are increasingly raising rates on Comprehensive Asset Management Accounts (CMA). Major firms such as Korea Investment & Securities, NH Investment & Securities, KB Securities, and Daishin Securities have proactively increased CMA rates this month.
According to the Korea Financial Investment Association, the total CMA balance as of June 15 was recorded at 110.73 trillion won, marking an increase of approximately 22.7 trillion won (25.8%) from the same period last year, which was in the 88 trillion won range. The total number of accounts stood at 39.55 million, similar to the 39.71 million accounts reported a year earlier.
CMA accounts allow brokerages to invest customer deposits in short-term financial products such as government bonds and commercial paper, providing returns to clients. They are categorized into repurchase agreement (RP), money market fund (MMF), and issuance note types. Interest is calculated daily based on the holding period, and deposits can be withdrawn at any time. However, these accounts are not protected by deposit insurance.
Individuals account for 88.9% of the total investors, primarily opting for RP-type CMAs. The balance for RP-type accounts reached 47.43 trillion won, a 30.5% increase from the previous year, representing about 43.0% of the total CMA balance. RP-type accounts invest in high-quality bonds such as government, municipal, and bank bonds through a repurchase agreement method, which generally carries lower investment risk.
Daishin Securities raised the yield on RP-type CMA accounts by 0.3 percentage points to 2.35% starting June 8. For agreements with trading periods of 181 to 365 days, the yield was increased by 0.50 percentage points, marking a significant adjustment compared to other firms. KB Securities also raised the yield on 90-day RP-type CMA accounts from 2.05% to 2.35% as of June 1, an increase of 0.05 percentage points.
The next largest product type is the issuance note CMA, which automatically invests in notes issued by brokerages to generate returns. As of the same date, the balance for issuance note CMAs was 25.17 trillion won, accounting for about 23.0% of the total CMA balance.
NH Investment & Securities has consecutively raised rates on issuance notes this month, resulting in a total increase of 0.40 percentage points for products with a maturity of 181 days or longer. Korea Investment & Securities also raised rates on issuance note products by 0.20 percentage points starting June 2.
An industry insider noted, "With rising deposit rates across banks and savings banks, brokerages are raising CMA rates to prevent customer outflows. Given the market's high expectations for an interest rate hike in the second half, it is likely that brokerages that have not yet adjusted their rates will join the trend soon."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.