The sale of the MBS, issued by the state-run Korea Housing Finance Corp. to securitize mortgage loans, amounted to 4 trillion won (2.8 billion U.S. dollars) in the July-September quarter, down 45.9 percent from the same quarter of last year, according to the Financial Supervisory Service.
The double-digit reduction came from higher borrowing costs that led to the lower demand for home-backed loans and the sluggish real estate market.
The country's central bank began to tighten its monetary policy stance in August last year, hiking the policy rate in eight steps from a record-low of 0.5 percent to 3.0 percent.
The issuance of asset-backed securities (ABS), including the MBS, stood at 12 trillion won (8.4 billion dollars) in the third quarter, down 6.4 percent from a year earlier.
The ABS issuance by financial companies soared 75.5 percent to 6 trillion won (4.2 billion dollars) in the third quarter due to robust demand for the ABS with sales receivable, such as credit card loan, as underlying assets.
The ABS sale by industrial companies was unchanged at 2 trillion won (1.4 billion dollars) in the cited quarter.
Latest comments