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ABS issuance surges 53 pct in 2020

All News 10:00 January 29, 2021

SEOUL, Jan. 29 (Yonhap) -- The issuance of asset-backed securities (ABS) in South Korea jumped 53 percent in 2020 due to increased sales of government-led mortgage funds, data showed Friday.

The value of ABS issues stood at 79.1 trillion won (US$71 billion) last year, up 27.4 trillion won from a year ago, according to the data from the Financial Supervisory Service (FSS).

ABS are structured with mortgages, auto loans, credit-card receivables and student loans as underlying assets.

The jump came as the Korea Housing Finance Corp., the state-run mortgage agency, increased the issuance of its mortgage-backed securities (MBS).

The amount of MBS issued by the agency came to 48.6 trillion won last year, up 73 percent from a year ago.

MBS issuance rose sharply in the third quarter as financial institutions introduced new home-backed loans with low fixed interest rates for working-class people.

The headquarters of the Financial Supervisory Service in Seoul (Yonhap)


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