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ABS issuance falls 18.8 pct in H1

All News 06:00 July 14, 2021

SEOUL, July 14 (Yonhap) -- The issuance of asset-backed securities (ABS) in South Korea fell 18.8 percent in the first half due to a decline in sales of government-led mortgage funds, data showed Wednesday.

The value of ABS issues stood at 35.4 trillion won (US$31 billion) in the January-June period, down 8.2 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 plunge came as the Korea Housing Finance Corp., the state-run mortgage agency, decreased the issuance of its mortgage-backed securities (MBS).

The amount of MBS issued by the agency came to 22.8 trillion won in the first half, down 5.9 trillion won from a year ago.

MBS issuance fell sharply in the first half as financial institutions completed selling loans with low fixed interest rates for low-income people, the FSS said.

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

kdh@yna.co.kr
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