Meritz Securities Selected as 'Best' Lead Manager for KAMCO MBS Issuance

Meritz Securities Selected as the Top Lead Manager
for 2024 KHFC MBS Issuance

Meritz Securities announced on the 13th that it was selected as the best lead manager for domestic Mortgage Backed Securities (MBS) issuance in 2024 by the Korea Housing Finance Corporation (KHFC).

KHFC explained that Meritz Securities was chosen as the best securities firm for managing 2.1 trillion KRW (12.7%) of the 16.46 trillion KRW MBS issued by KHFC last year and underwriting 2.3 trillion KRW (14.0%).

Meritz Securities handled various structures of MBS, including general MBS, pass-through MBS that directly distribute loan repayments to investors, and straight MBS excluding call options. As a result, it achieved top performance in both bidding and lead management records. It is also known to have received high scores for appropriate spread proposal performance.

A Meritz Securities representative stated, “This business was primarily conducted by the CMS (Capital Market Sales) team of the Capital Markets Headquarters, which is in charge of bond sales,” adding, “We were able to be selected as the best lead manager based on our market understanding and sales capabilities.”

Mortgage Backed Securities are a type of ABS (Asset-Backed Securities) issued based on long-term mortgage loans as underlying assets. Financial companies such as banks and insurance firms typically transfer mortgage receivables to a Special Purpose Company (SPC), which then issues MBS secured by these assets.

The lead manager facilitates trading between investors in the capital market and assists the SPC in making payments to the financial companies.

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