HK Mortgage prices inaugural retail MBS

Hong Kong Mortgage Corpor-ation (HKMC), the territory's secondary mortgage agency established in 1997, has completed the latest deal from its Bauhinia MBS vehicle. HSBC arranged the HK$2 billion ($256.9 million) offering, acting as sole book runner for the institutional part of the deal and joint lead with Standard Chartered for the retail tranches.

The transaction, Asia's first retail MBS and the region's second retail securitization, is backed by a pool of 4,373 mortgages purchased by HKMC from the Housing Authority, another government entity. The outstanding principal at launch was HK$2.1 billion.