Although securitization of mortgages was old hat in the United States and Europe, it had not really caught on in Asia. Past experience in Hong Kong suggested that the efforts of individual institutions securitize mortgages was not entirely successful. Nevertheless, the Hong Kong government put great hopes in Hong Kong Mortgage Corporation (HKMC) to develop the mortgage-backed securities (MBS) market. However, some banks asked whether it was time for them to get into the MBS business in Asia … Read more »

Although securitization of mortgages was old hat in the United States and Europe, it had not really caught on in Asia. Past experience in Hong Kong suggested that the efforts of individual institutions securitize mortgages was not entirely successful. Nevertheless, the Hong Kong government put great hopes in Hong Kong Mortgage Corporation (HKMC) to develop the mortgage-backed securities (MBS) market. However, some banks asked whether it was for them to get time in the MBS business in Asia. In particular, the banks and the HKMC had very different risks and concerns related to the development of the MBS. Teaching Purpose:
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from
Su Han Chan,
Ko Wang
Mary Ho
Source: University of Hong Kong
20 pages.
Release Date: 9 November 2001. Prod #: HKU169-PDF-ENG
Mortgage Securitisation in Hong Kong and Asia HBR case solution

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