Global banks including BofA, Citigroup, Goldman and JP Morgan have halved
financing costs for leveraged exposure to Korean-listed SK Hynix in recent years
weeks, sources say, after the stock’s US listing and a rout in AI-related names.
Banks are now offering clients exposure via swaps at roughly SOFR +150–300bps.
In mid‑June some banks had been quoting above SOFR +1,000bps for new or renewed
SK Hynix swap positions. SOFR has traded between 3.50% and 3.69% since May 1.
Earlier, as an AI-driven surge pushed SK Hynix about 11x in the 12 months to
June 22, banks constrained capacity, priced repo financing extremely high or
declined requests over concentration and repo-cost concerns; several that
previously refused are now seeking new swap business.
