The total amount of ABS, Asset-Backed Securities issued in the first quarter of this year was KRW 13.9 trillion, up by KRW 500 billion from the same period last year. As a result of the increase in the issuance of Korea Housing Finance Corporation and card companies, the total amount of ABS issued in the first quarter was 171.3 trillion won.
According to the Financial Supervisory Service (FSS) on March 26, the total amount of ABS issuance in the first quarter of 2017 increased by 50 billion won (3.2%) from 13.4 trillion won to 13.9 trillion won in the same period of last year. The Korea Housing Finance Corporation issued 9 trillion won (total 64.8%) of MBS based on mortgage loans. Mortgage backed securities (MBS) are ABSs issued by the Korea Housing Finance Corporation as mortgage-backed bonds.
Based on the NPL, installment finance, etc., the financial institutions are estimated to have 2.7 trillion won (19.4% of the total) and the general companies have 2.2 trillion won (15.8% of total) of ABS Issued.
ABS issuance by asset holders increased for public corporations and general companies, while financial companies decreased. The Korea Housing Finance Corporation (KBFG), which is a public corporation, issued KRW 9 trillion in MBS, an increase of KRW 300 billion, while ABS of banks, securities firms, and other companies decreased by KRW 100 billion. General companies issued ABS of KRW 2.2 trillion, an increase of KRW 300 billion based on terminal installment bonds and air freight bonds.
By asset securitization, the base of loans and receivables basis ABS increased, while the corporate bond primary-bond secured securities (P-CBO) decreased. The base ABS loans issued KRW 9.4 trillion, an increase of KRW 300 billion. The base of accounts receivable ABS increased by KRW 300 billion to KRW 4.3 trillion, while the P-CBO based on SME corporate bonds declined by KRW 100 billion.
The issuance of MBS on the basis of the housing mortgage loan of the Housing Finance Corporation increased by 300 billion won compared to the same period of the previous year because MBS issuance based on the increase of mortgage loan (bogeumjiri) sales in the second half of last year increased steadily since the third quarter of last year to be. The total ABS issued by women companies (credit card companies, installment companies) was 2.1 trillion won, similar to 2 trillion won in the same period of last year.
According to an official from the Financial Supervisory Service, "The card issuer increased its overseas ABS issuance to 1.60 trillion won due to the interest rate hike and improved overseas issuance conditions." On the other hand, installment financing increased due to issuance of installment financial bonds, "He said.
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