Korea's state mortgage provider has launched its first mortgage-backed bonds as part of a programme that will securitize around Won6 trillion $5.1 billion of mortgages over the next year. The deal is worth Won552 billion $470 million and is backed by mortgages provided through Hana Bank, Korea First Bank, Korea Exchange Bank and Samsung Life Insurance.
Korea Housing Finance Corporation KHFC opened for business in March, selling long-term mortgages, providing credit guarantees for home-buyers and buying mortgages from existing providers. The company plans to issue mortgage-backed securities MBS on a monthly basis and this first deal, through the KHFC MBS 2004-1 trust, is split into nine senior tranches ranging in maturity...
