International investors have given the thumbs up to Korea First Bank's $499.6 million mortgage securitization deal despite concerns surrounding political turmoil and a consumer credit crisis still fresh in many investors' minds.
The impeachment of South Korea's president, Roh Moo-hyun, split the country and destabilized parliament just as KFB's deal was pricing. Bankers selling the offer also had to contend with the fact that this was the first monoline wrapped cross-border securitization to go on sale since the collapse in Korea's consumer credit industry, which was previously the mainstay of the Asian securitization market.
However, investors kept cool heads even while members of the political establishment seemed to be losing...
