HF Holds ‘19 H1 MBS Investment Briefing
- Date 2019-03-22
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HF Holds ‘19 H1 MBS Investment Briefing
- HF unveils its plan to issue KRW 30 trillion in MBS and social bonds this year
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) said on March 22, 2019, that it held an MBS investment briefing for institutional investors at the Convention Center of Korea Federation of Banks.
HF plans to issue KRW 30 trillion in mortgage-backed securities (MBS) this year. KRW 6 trillion out of the total MBS issuance will be issued in the form of pass-through MBS*. In addition, HF is going to build a direct MBS investment channel for individual investors (such as setting up an office that offers both banking and securities brokerage services). It will also develop indirect MBS investment products such as funds.
* Pass-through MBS: a pool of mortgage-backed securities where the interest and principal payments from the borrowers pass through the pay agency directly to the MBS holders after deducting fees. The timing of the payments from the loan pool is identical to that of the cash flow passed through to investors, making future cash flow streams highly predictable.
HF CEO Lee Jung-Hwan said, “This year marks our 15th anniversary. Since our first MBS issuance in 2004, the cumulative amount of our MBS issuance has exceeded KRW 250 trillion, giving a boost to the nation’s long-term bond market. We hope that the social MBS that we began issuing this March will stimulate socially responsible investments in the bond market.”
The investment briefing was joined by about 60 participants from institutional investors and related agencies. At the briefing, HF unveiled its MBS issuance plan and had presentations and discussions on the trends in social bonds.
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Korea Housing Finance Corporation (HF) held an MBS investment briefing for institutional investors on the 22nd at the Convention Center of Korea Federation of Banks. HF CEO Lee Jung-Hwan delivers his welcoming remarks.
