The issuance of asset-backed securities in South Korea slipped 11.9 percent on-year in the third quarter because of a decline in sales of government-led mortgage funds, data showed Oct. 28.
The value of ABSs issues stood at 9.6 trillion won ($8.1 billion) during the July-September period, down 1.3 trillion won from a year ago, according to the data from the Financial Supervisory Service.
ABS are structured with mortgages, auto loans, credit card receivables and student loans as underlying assets.
The drop came as the Korea Housing Finance Corp., the state-run mortgage agency, reduced the issuance of its mortgage-backed securities.
The amount of MBS issued by the state-run housing financing company stood at 5.3 trillion won for the third quarter, down 700 billion won from a year earlier.
By Ram Garikipati and newswires (firstname.lastname@example.org)