The system of Mortgage-Backed Securities(MBS) is introduced with Asset-Backed Securities(ABS) for escaping Foreign Exchange Crisis at the end of 1997. In the system, bond of benefit stocks issued to encash the mortgage of banks circulates through capital market. Recently, it is issued by flowing intermediary organization after establishment of law concerned. At present, they hope it is attributed to the promotion of housing finance and expansion of building house by both making money cycle faster and having more chances to get the house to the people. It is just starting and we are short of experience compared to developed countries but need its enlargement.
Thus, purpose of this study reviews the flow and structure of MBS under the theoretical background and also intends to present activation methods by pointing out the problems in operation system Through comparison between an advanced country and our country.
This study has suggested the blueprint to trigger the system of mortgage-backed bonds. Up to date it is somewhat true that domestic financial organizations do not have deep interest in issuing MBS. But with respect to the capital development, various methods of fund-raising, and acquisition of long-term and stable investment, it is anticipated that their capacity to utilize MBS investment and mortgage swap as well as issuing MBS. In addition, it is expected that many mortgage cooperates specializing in mortgage marketing via issuing MBS will appear in the market and unbundling effects resulting from the value chain deconstruction of mortgage markets will be accelerated.
Therefore, the brisk administration of mortgage-backed bond system which is one of countermeasures to settle the controversial trouble in the housing finance can contribute to supply the long-term and steady housing capitals, and can provide the strategy for stable asset management in the long-term bond market which is now in supply-demand imbalance.