April 26, 2024
Economy
ABS issuance down 27% in 2016
[THE INVESTOR] The issuance of asset-backed securities in South Korea tumbled nearly 27 percent in 2016 from a year earlier, data showed on Mar. 7.
According to data by the Korea Capital Market Institute, the amount of ABS issues totaled 60.7 trillion won (US$52.60 billion) last year, down 26.8 percent from the previous year.
“The domestic ABS market will find it difficult to post positive growth this year as the property market is forecast to lose steam due to tighter government regulations on the housing market and household debt. In addition, less money is flowing into the bond market following a US rate hike,” said a KCMI researcher.
ABS are derived from underlying assets, such as auto loans, home loans, credit card receivables and student loans.
The tumble also marks a sharp turnaround from 2015, when the amount nearly doubled from the prior year. Since the 2008 global financial crisis, the amount of ABS issuance in South Korea had been on a steady rise except for 2014, with the annualized growth rate averaging 30.2 percent between 2010 and 2015.
(theinvestor@heraldcorp.com)
According to data by the Korea Capital Market Institute, the amount of ABS issues totaled 60.7 trillion won (US$52.60 billion) last year, down 26.8 percent from the previous year.
“The domestic ABS market will find it difficult to post positive growth this year as the property market is forecast to lose steam due to tighter government regulations on the housing market and household debt. In addition, less money is flowing into the bond market following a US rate hike,” said a KCMI researcher.
ABS are derived from underlying assets, such as auto loans, home loans, credit card receivables and student loans.
The tumble also marks a sharp turnaround from 2015, when the amount nearly doubled from the prior year. Since the 2008 global financial crisis, the amount of ABS issuance in South Korea had been on a steady rise except for 2014, with the annualized growth rate averaging 30.2 percent between 2010 and 2015.
(theinvestor@heraldcorp.com)
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