Despite a massive drop in local property values over the past year, Hong Kong developer Sino Land raised $302 million at favorable pricing through its global mortgage-backed issue. It is only the second mortgage-backed issue to originate from Hong Kong this year, since the launch of a $575 million MBS from Wharf Holdings Ltd. in February.

The securities are backed by cashflows from 21 residential, commercial and industrial properties located throughout Hong Kong. An SPC called Hong Kong Turbo Mortgage Funding Ltd. issued two classes of six-year securities. The top four pieces were floating-rate, U.S. dollar and euro-denominated securities, while the subordinate piece was denominated in Hong Kong dollars and priced to yield 9.8%. Moody's Investors Service and Fitch IBCA rated the Class A notes triple-A and the Class B notes double-A.

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