KHFC closes Asia's third covered bond

Korea Housing Finance Corp prices non-Japan Asia's third covered bond, with a book anchored by US and Asian investors.
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KHFC guarantees more than $17 billion of home loans
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<div style="text-align: left;"> KHFC guarantees more than $17 billion of home loans </div>

Korea Housing Finance Corp KHFC beat choppy markets to price a $500 million covered bond early yesterday morning. The deal, which matures in five years and five months, is the third covered bond out of non-Japan Asia and is KHFC’s second deal following its debut issue last year.

Covered bonds are backed by cashflows from mortgages or public-sector loans, similar to asset-backed securities but stay on the issuer’s balance sheet, like secured bonds. Kookmin Bank issued the region’s first deal in May 2009 when it raised $1 billion and, so far, all the issuance has come from Korea.

Covered bonds are still a new asset class...

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