HF Issues 30 Trillion Won of MBS This Year

- HF holds '18 H1 MBS roadshow

Korea Housing Finance Corporation is set to issue a total of 30 trillion won of mortgage-backed securities (MBS) this year.

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) held an MBS roadshow at the Korea Federation of Banks in Seoul on April 6, 2018. At the roadshow attended by institutional investors and relevant agencies, HF revealed its plan to issue MBS in the amount of 30 trillion won this year.  

HF CEO Lee Jung-Hwan said, “In only 13 years since our first issuance in 2004, the cumulative amount of our MBS issued and MBS outstanding are 220 trillion won and 110 trillion won, respectively. This shows that HF has led the development of the nation's long-term bond market.” He also went on to say, “This year, we will issue more pass-through MBS* to promote product diversification in the bond market, support the government in its efforts to facilitate the use of covered bonds by banks, and consider our reverse mortgage securitization.” He added, “I will continue to strive to make our MBS one of the best investment options in terms of profitability and stability.”
  * Pass-through MBS is where homeowners' payments pass from the original bank after fee deduction through to the holders of the pass-through securities. This type of MBS, which is common in the U.S. and Japan, is structured to amortize loans with fixed monthly payments, increasing the predictability of future cash flows. 

HF MBS is a highly stable investment option backed not only by sound underlying assets but also by HF's guarantee of payment. They are designated as securities covered by the open market operations of the Bank of Korea and also as Level 1 assets under Basel Ⅲ.

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HF held its MBS roadshow at the Korea Federation of Banks in Seoul on the 6th. HF CEO Lee Jung-Hwan delivered welcoming remarks.