KHFC Issues KRW357.4 Billion in 3rd MBS in 2007

  On July 11, KHFC issued mortgage-backed securities (MBS) to the value of KRW357.4 billion in this year's third issue of MBS. In this issuance, the mortgage claims of bogeumjari loans extended by 13 financial institutions, including Hana Bank, were used as underlying assets. The issue of MBS in July 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 5.35%, 5.55%, 5.69%, 5.74%, 5.77%, and 5.82%, respectively, and the weighted average interest rate is 5.70%. Following this latest 24th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW9.6952 trillion.