In December 2001, the Hong Kong Mortgage Corporation (HKMC) launched its $3 billion Bauhinia MBS Ltd. securitization program. It has now just completed its first issue, the largest-ever Hong Kong dollar-denominated residential mortgage security, and plans to launch at least another this year. Market participants hope that this will reawaken the Hong Kong securitization market.
HKMC is master servicer and transaction administrator, as well as the seller. Merrill Lynch is the program arranger, and the program dealers are Barclays Capital, Dai Heng Bank, Deutsche Bank, HSBC, JPMorgan, Merrill Lynch, Citigroup/Salomon Smith Barney and UBS Warburg.