The issuance of asset-backed securities (ABSs) in South Korea shrank 32 percent on-year in the first half of this year due to decreased sales of mortgage-backed securities, data showed Wednesday.
The ABS issued during the January-June period came to 24.1 trillion won ($18.4 billion), down 11.3 trillion won from a year earlier, according to the data from the Financial Supervisory Service.
ABS refers to securities based on such assets as mortgages, auto loans, credit card receivables and student loans.
The decline stemmed mostly from a fall in the issuance of mortgage-backed securities (MBSs) by the state-run Korea Housing Finance Corp. (HF).
The HF sold 11.9 trillion won worth of MBSs in the first half, down 48.1 percent from a year earlier, the data showed.
The HF sold fewer MBSs as the fast-rising interest rates tightened state-supported mortgage policies and reduced investors' appetite for risk.
The ABS issuance by financial firms inched up 1.7 percent on-year to 7.9 trillion won, while the issuance by non-financial firms decreased 10.3 percent to 4.3 trillion won. (Yonhap)