Korea : S. Korea s ABS issuance jumps 62.5 pct in Q3.Byline: datta03 Sales of asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. (ABS) in South Korea jumped 62.5 percent in the third quarter from a year earlier on increased sales of mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , the financial watchdog said Monday. ABS issuance stood at 8.55 trillion won (US$7.23 billion) in the July-September period, compared with 5.26 trillion won the previous year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Financial Supervisory Service (FSS FSS Federal Supply Service (US General Services Administration) FSS Flight Service Station FSS Family Self-Sufficiency FSS Fixed Satellite Service FSS Forensic Science Service (Great Britain) ). Asset-backed securities are derived from underlying assets such as car loans, home equity loans, credit card receivables and student loans. "In the third quarter, sales of mortgage-backed securities climbed as the state-run Korea Housing Finance Corp. extended more mortgage loans and local banks securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. more non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. ," the FSS said in a statement. Korea Housing Finance provides long-term mortgages with a maturity of 10 years or more and issues securities based on such lending. Local banks securitized 1.01 trillion won worth of non-performing loans last quarter, up 188.2 percent from a year earlier. The watchdog said it expects non-performing loan ABS sales to continue to increase in the fourth quarter as local banks are forecast to sell such securities further to boost their asset quality. Rising interest rates for home-backed loans also are expected to encourage Korea Housing Finance to issue more mortgage-backed securities, it added. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion