The Korea Asset Management Corp. (Kamco) rang in the new year with the issue of a W340 billion ($302.2 million), non-performing loan-backed quasi-securitization on January 19. It is the first of nine NPL-backed securitizations totaling nearly W5 trillion that the bad debt-clearing agency plans for this year.

The issue was backed by a pool of restructured corporate loans with a face value of W365.6 billion which Kamco purchased from nine domestic banks. It comprised five tranches of bonds with maturities of one, two, three, five and seven years and yields ranging from 10.22% for the one-year tranche to 12.32% for the seven-year tranche.

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