S. Korea`s ABS issuance plunges in H1

SEOUL, Aug. 15 (Yonhap) -- Sales of asset-backed securities (ABS) in South Korea
tumbled 40.9 percent in the first half of the year due to a weak property market
and improved bond-market conditions, the financial watchdog said Sunday.
ABS issuance stood at 10.9 trillion won (US$9.2 billion) in the January-June
period, compared with 18.6 trillion won during the same period a year earlier,
according to the Financial Supervisory Service (FSS).
Asset-backed securities are derived from underlying assets such as car, home
equity and student loans, and credit card receivables.
The watchdog attributed the plunge to a sharp fall in the amount of ABS sales
based on debts owed by construction companies. Another factor was the improved
condition of the local bond market, which helped companies sell debts more
easily, it said.
In the six-month period, ABS issuance based on corporate bonds tumbled 48.2
percent on-year to 1.2 trillion won, according to the watchdog.
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