Mortgage-backed securities - Daily Economy

Asset-backed securities (issued to liquidate the loans, including early ABS mortgage (a kind of) Mortgage to a) as collateral. Mortgage bonds are long-term bonds with maturities of 20 to 30 years for which financial institutions issue loans and sell their homes as collateral. If ABS is a bond issued on the basis of all assets including real estate, MBS is different in that it refers to mortgage bonds issued by financial


institutions as mortgages. The issuance of MBS will have the effect of early cashing bonds that are still due. In 1999, the Korea Housing Loan Securitization Corporation Act was enacted to provide the basis for this. The domestic MBS market last year was 838 billion won, accounting for only 2% of the total ABS issuance of 51 trillion won.


Samsung Life Insurance is the first domestic financial company to issue MBS worth US $ 500mn overseas . The domestic mortgage bond issuance is based on the assumption that MBS is transferred to a foreign asset securitization specialist when the domestic financial institution sells mortgage bonds to domestic asset securitization companies and the overseas asset securitization specialist transfers MBS. Foreign investors will pay the sale proceeds to overseas asset securitization specializing companies, and if they give back the MBS acquisition price to the domestic asset securitization specializing company , funds will flow into domestic financial companies .