'Jugeumgong Issuance Tripled' 3Q ABS 17.6 Trillion Won... Up 47.4% YoY
Second Half Special BoGeumJaRi Loan Basic MBS Officially Issued
The issuance amount of asset-backed securities (ABS) in the third quarter increased by 47.4% year-on-year, driven by a rise in mortgage-backed securities (MBS) issuance. ABS refers to securities issued backed by assets such as real estate, accounts receivable, and mortgage loans.
On the 30th, the Financial Supervisory Service announced that the asset-backed securities (ABS) registered and issued under asset securitization plans in the third quarter of this year amounted to 17.6 trillion won, a 47.4% increase compared to the same period last year. The surge in ABS issuance is attributed to the sharp increase in MBS issuance by the Korea Housing Finance Corporation, which issues mortgage-backed securities based on mortgage loans. MBS issuance jumped 207.4% from 4 trillion won in the third quarter of last year to 12.3 trillion won in the third quarter of this year. This was due to the full-scale issuance of special BoGeumJaRi loan-based MBS in the second half of the year. As of the end of September this year, the effective application amount for the special BoGeumJaRi loan in the second half reached 40.5 trillion won, exceeding the target supply amount of 39.6 trillion won.
Issuance by financial companies and general corporations decreased. Financial companies issued ABS worth 3.9 trillion won, down 34.5% year-on-year. Banks issued 1 trillion won (+0.7 trillion won, 216.7%↑), a 216.7% increase compared to the previous year, based on non-performing loans (NPLs). However, credit finance companies issued 1.6 trillion won, down 62.7% year-on-year, based on installment finance receivables, and securities companies issued 1.2 trillion won, down 10.6% year-on-year, based on corporate bond-backed P-CBOs.
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General corporations issued ABS worth 1.5 trillion won, down 27.0% year-on-year, based on terminal installment receivables and real estate project financing (PF). Meanwhile, the total outstanding amount of ABS stood at 246 trillion won as of the end of September this year, a 6.7% increase compared to 230.5 trillion won in the same period last year.
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