S. Korea's ABS issuance rises 15.7% in 2011

February 17, 2012 9:14 am 

SEOUL, Feb. 17 — Asset-backed securities (ABS) issuance in South Korea climbed 15.7 percent last year led by financial firms, the financial watchdog said Friday.

Local private and public companies issued a total of 32.4 trillion won (US$ 28.7 billion) worth of ABS in 2011, compared with 28 trillion won a year earlier, according to the Financial Supervisory Service.

Issuances by financial companies rose 24.6 percent on-year to 17.7 trillion won, accounting for 54.7 percent of total ABS issuance last year.

Those by public firms gained 9.3 percent to 11.6 trillion won, while non-financial companies scaled back their ABS issuance by 3 percent to 3.1 trillion won, the regulator said.

Financial companies and mortgage lenders use cash flows from mortgages, loan obligations and credit card debts as underlying assets to float ABS. (PNA/Yonhap) DCT/jnc

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