Hong Kong Mortgage Corp. (HKMC), the government-controlled secondary mortgage agency, will launch on Oct.19 the third deal out of the Bauhinia special purpose vehicle. HSBC is arranging the HK$2 billion ($256 million) issue, and will act as sole underwriter for the institutional tranches, with Standard Chartered brought in as joint-lead for the sale to retail investors.

This marks the first time HKMC has offered MBS paper to retail buyers, but was inevitable following successful offerings of its straight debt deals and the Hong Kong government's blowout HK$6 billion tunnels-backed securitization in May (see ASR, 5/10/04).

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