KHFC Issues KRW391.6 Billion in MBS

  On October 25, KHFC issued mortgage-backed securities (MBS) to the value of KRW391.6 billion in this year's sixth issue of MBS. In this issuance, the mortgage claims of bogeumjari loans extended by 12 financial institutions, including Hana Bank, were used as the underlying assets.

  This issue of MBS in October had a range of eight maturities, ranging 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 5.58%, 5.81%, 5.85%, 5.88%, 5.90% and 5.91%, respectively, and the weighted average interest rate is 5.86%. Following this latest 27th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW10.8155 trillion.