KHFC Issues KRW346.7 Billion in MBS

On March 7, KHFC issued mortgage-backed securities (MBS) to the value of KRW346.7 billion using the mortgage claims of bogeumjari loans extended by eight financial institutions, including Hana Bank, as the underlying assets.

This issue of MBS in March, the second  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 5.09%, 5.27%, 5.43%, 5.50%, 5.51% and 5.52%, respectively, and the weighted average interest rate is 5.46%.

Following this latest 29th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW11.5890 trillion.