"MBS Investment Promotion Expected"
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Korea Housing Finance Corporation has completed the development of the 'Mortgage-Backed Securities (MBS) Index' and is launching a public service for investors.
The Housing Finance Corporation announced on the 23rd that the development of the MBS index for MBS issued by the corporation has been completed, and the MBS index (K-MBSI) will be published on the Securitization Disclosure Portal (K-MBS).
The K-MBSI is a market capitalization-weighted price index calculated using MBS as the underlying asset. It calculates daily returns using the valuation prices of individual MBS and expresses changes in the value of MBS as a single number (index).
The index calculation base date is January 1, 2017, and it is calculated daily. Total return indices and market price indices are published separately for each underlying asset.
In addition to indices by underlying asset, comprehensive information is provided including ▲sub-indices segmented by issuance maturity and expected maturity ▲auxiliary information for each index (daily returns, average duration, etc.) ▲time series data ▲periodic return information.
The MBS index has been approved as a national statistic by the Statistics Korea and is scheduled to be disclosed through the Securitization Disclosure Portal operated by the corporation on the 23rd. The index name was finalized as K-MBSI (Korea Mortgage Backed Security Index) through an internal contest.
A representative of the Housing Finance Corporation said, “By providing the MBS index, asset management institutions and other investors will be able to use it for investment decisions by comparing it with other bond indices such as government bonds,” and added, “It is expected to have the effect of promoting investment in MBS by creating a foundational environment for MBS investment.”
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