MBSs put up for the first round of bidding in the second half, all sell out
- Date 2015-07-22
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“MBSs put up for the first round of bidding in the second half, all sell out”
- Bogeumjari and conforming loans MBSs with maturities of 7, 10, 15, and 20 years were put up for auction and all sold out -
A total of 530 billion won worth of MBSs secured by Bogeumjari and conforming loans with maturities of 7 to 20 years
were sold out in the first round of bidding in the second half of this year.
The Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 22nd that it has issued a total of
five trillion won of MBSs in the latest round and auctioned off 530 billion won of MBSs with maturities 7, 10, 15,
and 20 years. The bids made by investors amounted to 1.53 trillion won. The remaining MBSs with maturities of 1, 2, 3,
and 5 years will be sold off to the loan-offering banks through non-competitive bidding.
An HF official said of the bidding, “The successful completion of this large scale bidding on MBSs secured by Bogeumjari
and conforming loans is expected to ease the strains in the supply and demand balance and boost investor sentiment.
We also expect that the next rounds of MBSs to be issued from August will be channeled into the market smoothly.”
He also added, “Of the total eight trillion won of MBSs to be issued, approximately four trillion of them, or 50%,
to be auctioned off in the second half will have a maturity of five years or more.”
HF plans to issue a total of eight trillion won of MBSs through the end of this year on a biweekly schedule. Of these,
short-term MBSs with maturities of 1, 2, and 3 years will be sold off to the loan-offering banks through non-competitive
bidding until these banks exhaust their quotas, and the remaining MBSs with a maturity of five years or longer
will be auctioned off to general investors through competitive bidding.