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Korea’s Q3 asset-backed securities issuance drops 39.3%

Published: 30 Oct. 2024, 10:57

Financial Supervisory Service Director Lee Bok-hyun [NEWS1]

The issuance of asset-based securities (ABSs) in Korea fell markedly on year in the third quarter due to a sharp decline in loan-backed ABS issuance, data showed Wednesday.

The ABSs issued in the July-September period came to 10.7 trillion won ($7.73 billion), down 39.3 percent, or 6.9 trillion won, from a year earlier, according to the data from the Financial Supervisory Service.

ABS refers to securities based on such assets as mortgages, auto loans, credit card receivables and student loans.

The decline came as the issuance of loans-backed ABS fell 55.6 percent on year to 6.07 trillion won in the third quarter, led by a sharp fall in mortgage-backed securities (MBS) issuance.

But the ABS issuance backed by accounts receivables advanced 37.6 percent on year to 3.85 trillion won.

As of end-September, the value of outstanding ABSs stood at 258.8 trillion won, up 5.2 percent from a year before, the data showed.

Yonhap