ABS issuance in Q1 up 4 trillion KRW YoY... Card bonds surge 8-fold

1Q ABS Issuance Amount 14.8595 Trillion KRW
38.1% Increase YoY
Rapid Surge in Card Bonds Issuance

The issuance amount of Asset-Backed Securities (ABS) in the first quarter of this year surged by more than 4 trillion KRW compared to the same period last year.

According to the Financial Supervisory Service on the 29th, the registered ABS issuance amount in the first quarter of this year was 14.8595 trillion KRW, an increase of 4.0984 trillion KRW (38.1%) compared to 10.7611 trillion KRW in the same period last year.

By ABS asset type, loan receivables amounted to 8.2255 trillion KRW, up 5.6% from 7.7858 trillion KRW in the same period last year. Non-Performing Loans (NPL) surged by 113.5% to 1.6167 trillion KRW from 757.4 billion KRW in the same period last year. During the same period, Mortgage-Backed Securities (MBS) decreased by 16.3% to 5.8828 trillion KRW due to reduced securitization demand for policy mortgage loans.

In the first quarter of this year, accounts receivable surged by 3.4358 trillion KRW (163.1%) to 5.5418 trillion KRW from 2.106 trillion KRW in the same period last year. Card receivables increased dramatically by 2.7433 trillion KRW (816.5%) to 3.0793 trillion KRW from 336 billion KRW in the same period last year. This was because interest in card receivables grew as an alternative funding source due to the increase in card debt maturity scale. Installment finance receivables rose by 480 billion KRW (88.1%) to 1.025 trillion KRW.

By asset holders, the issuance amount by Korea Housing Finance Corporation decreased, while that of financial companies and general corporations increased. The ABS issuance amount by Korea Housing Finance Corporation in the first quarter of this year was 5.8828 trillion KRW, down 1.1456 trillion KRW (16.3%) from 7.0284 trillion KRW in the same period last year.

Among financial companies, credit-specialized finance companies such as card companies increased by 378.8% to 4.2181 trillion KRW from 881 billion KRW in the same period last year. Banks increased by 858.6 billion KRW (124.9%) to 1.546 trillion KRW, and securities companies rose by 222.9 billion KRW (25.6%) to 1.0922 trillion KRW.

The ABS issuance amount by general corporations in the first quarter of this year was 2.0835 trillion KRW, up 858.5 billion KRW (70.1%) from 1.225 trillion KRW in the same period last year.

This content was produced with the assistance of AI translation services.