Attractive prospects in structured finance
(South Korea) - Total issuance in South Korea's structured finance market, particularly cross-border securitisations, is expected to demonstrate good growth in 2002 as the sector exceeds its US$1.76 billion deal flow in 2001 through a keen appetite by monolines for Korean consumer assets, according to rating agency Standard & Poor's (S&P).
S&P believe domestic investors who have avoided unsecured corporate issuances in a concern with credit quality will continue to invest in structured bonds for reasons of transparency stable performance. Foreign investors, interested in cross-border transactions are expressing growing interest in South Korea's securitisation market.
Transaction expertise and experience gained by both domestic and international players have reached a critical mass, enabling transactions to close quickly, in S&P's view.
The country's securitisation market was led in 2001 by consumer asset-backed securities, including credit card and card loans, transactions that are driven by Government policy looking to provide funding to companies that cannot access bank credit easily.
Transaction expertise and experience gained by both domestic and international players have reached a critical mass, enabling transactions to close quickly, in S&P's view.
The country's securitisation market was led in 2001 by consumer asset-backed securities, including credit card and card loans, transactions that are driven by Government policy looking to provide funding to companies that cannot access bank credit easily.
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