Issuance of MBS Exceeds KRW10 Trillion

  The cumulative issuance of MBS by KHFC exceeded KRW10 trillion.  With the latest 25th issuance, KHFC issued KRW10.0869 trillion in MBS over in the three years and two months since the first MBS issuance in June 2004.

  KHFC MBS 2007-4 issued on August 23 totaled KRW391.7 billion.  In this issuance, the mortgage claims of bogeumjari loans extended by 11 financial institutions, including Hana Bank, were used as underlying assets.

  MBS issued in August has a range of eight maturities, from one year to 20 years.  MBS with maturities of five years or more carry call options as a safeguard against early repayment of the underlying bogeumjari loans.  The interest rates for MBS maturing in one, three, five, 10, 15, and 20 years are 5.38%, 5.46%, 5.50%, 5.52%, 5.55%, and 5.60%, respectively.