Asset-backed securities (ABS) issuance in South Korea posted a double-digit fall in the third quarter of this year, financial watchdog data showed Tuesday.
ABS issuance came in at 12.6 trillion won (11.2 billion U.S. dollars) in the July-September quarter, down 17.3 percent from the same period of last year, according to the Financial Supervisory Service (FSS).
The decline was attributable to weaker demand for home-backed loans. The issuance of mortgage-backed securities (MBS) tumbled 22.4 percent to 7.6 trillion won in the cited period.
The government announced a set of measures in early August to control speculative investment in the real estate market, leading to lower demand for home-backed debts.
Household debts surged in the past years as the policy rate was cut to an all-time low of 1.25 percent in June last year from 3.25 percent in July 2012.
ABS, sold by financial companies, also retreated 19.4 percent to 2.5 trillion won in the quarter, but those issued by industrial companies increased 9.1 percent to 2.4 trillion won.(1 U.S. dollar equals 1128.06 S.Korea won)
ABS issuance came in at 12.6 trillion won (11.2 billion U.S. dollars) in the July-September quarter, down 17.3 percent from the same period of last year, according to the Financial Supervisory Service (FSS).
The decline was attributable to weaker demand for home-backed loans. The issuance of mortgage-backed securities (MBS) tumbled 22.4 percent to 7.6 trillion won in the cited period.
The government announced a set of measures in early August to control speculative investment in the real estate market, leading to lower demand for home-backed debts.
Household debts surged in the past years as the policy rate was cut to an all-time low of 1.25 percent in June last year from 3.25 percent in July 2012.
ABS, sold by financial companies, also retreated 19.4 percent to 2.5 trillion won in the quarter, but those issued by industrial companies increased 9.1 percent to 2.4 trillion won.(1 U.S. dollar equals 1128.06 S.Korea won)
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