The 2014 Weighted-Average Interest Rate of HF MBS Stands at 3.05%
- Date 2014-12-29
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The 2014 Weighted-Average Interest Rate of HF MBS Stands at 3.05%
Korea Housing Finance Corporation (HF, President Kim Jae-Chun) announced on the 29th that the 2014 weighted-
average interest rate of its mortgage-backed securities (MBS) was 3.05%* due to a drop in the benchmark interest
rate on five-year government bonds and the added rate.
* 5-year government bond interest rate (2.82%) + added rate (0.23%)
According to HF, by maturity, ▲ short-term securities (1-3 years) accounted for 44.2% of its total MBS portfolio,
while ▲ medium-term securities (5-7 years) made up 43.1%, and ▲ long-term securities (10 years or longer)
accounted for 12.7%. Its major investors were ▲ pension funds (29.7%), followed by ▲ commercial banks (26.3%),
▲ securities firms (19.5%), ▲ insurers (19.4%), and ▲ investment trusts (5.1%).
An HF official said, “HF was able to help low- to middle-income families purchase their first homes by cutting
interest rates through improved disclosure on MBS investments, the inclusion of our corporation in the Bank of
Korea's open market operation, and a balanced supply and demand in the bond market,” adding “we will make
more efforts to improve our systems and attract more investors, thereby lowering our financing cost in the future.”