KHFC Issues KRW426.8 Billion in MBS

  On February 26, KHFC issued mortgage-backed securities (MBS) to the value of KRW426.8 billion using the mortgage claims of bogeumjari loans extended by 18 financial institutions, including Hana Bank, as the underlying assets.

  This issue of MBS in February, the first in this year, 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 5.17%, 5.42%, 5.64%, 5.71%, 5.72% and 5.73%, respectively, and the weighted average interest rate is 5.66%. Following this  28th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment reached a total of KRW11.2423 trillion.