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ABS issuance plunges 31.5% in Q3

By Yonhap
Published : Oct. 19, 2021 - 09:11

(Yonhap)

The issuance of asset-backed securities (ABS) in South Korea plunged over 30 percent on-year in the third quarter of this year due to a decline in sales of mortgage-backed securities, data showed Tuesday.

The value of ABS issued in the third quarter stood at 12.8 trillion won ($10.8 billion), down 31.5 percent from a year earlier, according to the data from the Financial Supervisory Service (FSS).

ABS refers to securities structured with mortgages, auto loans, credit-card receivables and student loans as underlying assets.

The plunge came as the Korea Housing Finance Corp., the state-run mortgage agency, decreased the issuance of its mortgage-backed securities (MBS).

The amount of MBS issued by the agency came to 7.4 trillion won in the third quarter, down 3.2 trillion won from a year earlier, the data showed. (Yonhap)

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