The issuance of asset-backed securities (ABSs) in South Korea jumped 24.6 percent in the first half of this year from a year earlier due to an increase in sales of mortgage-backed securities (MBSs), data showed Monday.
The ABS issued during the January-June period came to 29.9 trillion won (US$23.4 billion), up from 24 trillion won a year ago, according to the Financial Supervisory Service (FSS).
ABS refers to securities based on such assets as mortgages, auto loans, credit card receivables and student loans.
The increase is largely attributable to a steep rise in MBS issuance for policy mortgage loans by the state-run Korea Housing Finance Corp., according to the FSS.
The agency issued 17.6 trillion won worth of MBSs in the first half, up 48.4 percent from a year earlier.
ABS issuance by financial companies also grew 9.8 percent on-year to 8.7 trillion won, while ABS issuance by nonfinancial companies fell 14.4 percent to 3.6 trillion won.
As of end-June, outstanding ABSs stood at 238.4 trillion won, up 9.6 trillion won, or 4.2 percent, from a year before, the data showed.
Source: Yonhap News Agency