Asian Structured Finance: 2013 Outlook

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Date Published 2013
Primary Author Moody's Investor Service
Other Authors
Theme Mortgage Bonds, The Secondary Market


In this report, we discuss the performance in 2013 of the following types of structured finance transactions in Asia (ex-Japan): » Korean asset-backed securities (ABS) and residential mortgage-backed securities (RMBS): Credit card receivables, auto loans and residential mortgage loans in new and existing securitization transactions will exhibit stable credit quality, after consideration of both positive and negative factors. Korea’s fundamentals have improved since the global financial crisis. Economic policies will likely demonstrate an overall continuity when president-elect Ms. Park Geun Hye takes office in February. » Singaporean commercial mortgage-backed securities (CMBS): Rents and occupancy rates for the shopping mall segment will be stable, while the office sector and industrial buildings will exhibit higher volatility. » Asian (ex-Japan) synthetic balance-sheet collateral loan obligations (CLOs): The default rate for underlying collateral will be stable. Collateral comprises senior unsecured term loans or trade loans for corporates. The stable outlook reflects 1) a low projected default rate, 2) robust growth in emerging markets and 3) the mainly stable outlooks for the most represented industries. » Asian (ex-Japan) covered bonds: Although this market is at an early stage, market participants across the region have shown strong interest. There will be developments in legal, regulatory and market activities.

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