chang juliachonghui (d1) : ppt
TRANSCRIPT
Korea Asset Management Corporation
KAMCO’s Real Estate ABS in Korean Market
Ms. Julia Chong Hui Chang General Manager, International Business Dept.
Korea Asset Management Corporation(KAMCO), Korea
2Korea Asset Management Corporation
II. KAMCO’s Role in the Financial Sector Restructuring
III. Classification of NPL
Ⅰ . Real Estate Securitization Market in Korea
IV. ABS Issues by KAMCO & Case Studies
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I. Real Estate Securitization Market in Korea
Korea Asset Management Corporation
I-1. KAMCO’s Ordinary Loan Disposition Methods
I-2. Korean Real Estate Securitization Market in General (1999.1 ~ 2000.7)
4Korea Asset Management Corporation
I-1. Real Estate Securitization Market in Korea
(Unit : KRW in bn)
Bulk sale
ABS Issuance
Court Auction, Public Sales
Sale to AMC (JV)
Sale to CRC (JV)
Collection
Individual Loan Sales
Recourse & Cancellation
Total
Resolution MethodsAccumulated Resolution
Face Value Purchase Value Recovery Value
2,162
493
8,045
735
600
6,386
114
3,271
21,806
939
193
268
202
87
2,409
1,650
1,878
7,626
966
196
402
292
114
2,942
2,683
1,878
9,473
KAMCO’s Ordinary Loan Disposition Methods
Source : KAMCO white paper, 2001.12
5Korea Asset Management Corporation
I-2. Korean Real Estate Securitization Market in General
Real Estate ABS Market (1999.1 ~ 2000.7)
Restructured corporateloan
Koland assets
Residential mortgage
Ordinary secured
Lease receivable
Real estate trustreceivable
Construction receivable
※ABS Issuers :
KAMCO, Housing & Kookmin,
IBK, Agricultural Bank,
Mutual Saving Banks, etc.
6.52%3.1%
8.21%
11.7%
12.3% 21.16%37%
※
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II. KAMCO’s Role in the Financial Sector Restructuring
Korea Asset Management Corporation
II-1. KAMCO’s Role
II-2. KAMCO’s Resolution Strategies
7Korea Asset Management Corporation
Early Recovery
of Public Money
Provide Liquidity and Restore Financial Stability Revitalize Korean Economy
Inject Public Money
Resolve NPLs
Minimize
Public Burden
Support
Normalization
Assist Restructuring
FinancialInstitutions
Investors
Government
/National Tax
Acquire NPLs
Corporate
II-1. KAMCO’s Role in the Financial Sector Restructuring
8Korea Asset Management Corporation
II-2. KAMCO’s Resolution Strategies
• Suspension of legal action • Suspension of foreclosure procedure• Lend working capital• Debt for equity swaps• Payment guarantees• Purchase promissory notes
Corporate Restructuring Company Asset Management Company Corporate Restructuring Vehicle
Analysisof
NPLs
• Portfolio sales(Int’l Bidding)• Securitization (ABS)• Public sales• Foreclosure sales• Individual Loan sales
• Discount outstanding principal balance
• Reduce interest rate• Extend payment maturity
Disposition Rehabilitation
ReschedulingJoint Venture
Principles & Policies
Speedy, loss minimizing and value upgrading resolution
Efficient management, transparent procedures and fair transactions
Strategies
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III. Classification of NPL
Korea Asset Management Corporation
III-1. KAMCO’s Asset Types
III-2. Secured Ordinary Loans - “Property” Play
10Korea Asset Management Corporation
KAMCO has 4 Types of Assets
III-1. Classification of NPL
Ordinary loansSecured
ordinary loansUnsecured
ordinary loans
SecuredRestructured
corporate loans
Unsecuredrestructured
corporate loans
Restructuredcorporate loans
Secured UnsecuredCourt approval
Collateral
11Korea Asset Management Corporation
III-2. Classification of NPL
Ordinaryloans
Loans currently delinquent for 3 months or longer whetherthey are secured or unsecured.
Secured Ordinary Loans were securitized
Loans which have obtained court approval forrestructuring as part of corporate re-organization orcomposition proceedings whether they are secured orunsecured.
Restructuredcorporateloans
Obligor’s payment schedule is approved by Bankruptcy Court and agreed upon by creditors
Collateral value is already reflected in obligors’ payment schedule
Secured Ordinary Loans are “Property” Play
Restructured Loans are “Corporate” Play
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IV. ABS Issues by KAMCO & Case Studies
Korea Asset Management Corporation
IV-1. Joint Venture SPC with Private Investor
IV-2. Structure for KAMCO ABS Issuance
IV-3. Case study 1 : KAMCO 2000-4 Discounted Cash Flow (DCF)
IV-4. Case study 2 : Resurgence Korea One (first real pass-through payment)
13Korea Asset Management Corporation
IV-1. Joint venture SPC with Private investor
KAMCO Investor
SPCKAMCO 50% : Investor 50%
AMCKAMCO 35% : Investor 65%
NPLs cash
Asset Management Contract
❑ Why joint venture SPC for NPL resolution ?
➙ For easier transfer of mortgage & REO, and stamp duty exemption
cash
14Korea Asset Management Corporation
IV-2. Structure for KAMCO ABS Issuance
SPC(Shell com.)
Obligors
(2) Securities
(4) Proceeds(5) Proceeds
(1) True Sale (1) Notice of loan transfer to SPC
(6) Payment
Lead Manager
Disposed Asset Mgt
Dept Credit Enhancer Trustee
Legal Advisor
Financial Advisor
Rating Agency
(3) Securities
(3) Proceeds
Investors
Financial Supervisory Commission (FSC)
Register to
KAMCO
15Korea Asset Management Corporation
IV-3. Case study 1 : KAMCO 2000-4
ISSUER:
ASSET:SIZE:
COUPON RATE:
RATING:
KAMCO 2000-4 Securitization Specialty Co.
Ordinary Secured Loans
KRW 257.0 bn(3 tranches) with 57 bn Subordinated notes
Govt Bond +20bp /+90bp
LEGAL MATURITY:
LISTING:NOTES OFFERD:
CREDIT FACILITY PROVIDER:
1 Year/2 Year
Kookmin Bank(KRW 80 bn)
Korea Stock Exchange
In KRW
AAA / AA / na
REPAYMENT PRINCIPLE: Pay Through Basis
SELLER: KAMCO
CREDIT ENHANCEMENT: 50 bn cash reserve
LEAD MANAGER:
ISSUE DATE:
Seoul Securities, SK Securities
19 July 2000
ORIGINATING BANKS: Commercial banks in Korea(Creditor banks)
MASTER SERVICER: KAMCO
16Korea Asset Management Corporation
IV-3. Case study 1 : Discounted Cash Flow (DCF)
Valuation Process by Discounted Cash Flow Method (DCF)
•NPL in FV(KRW 741.2 bn)
•Auction and Collection Simulation
•Estimated Cash Inflow(KRW 282.5
bn)
•Discounted
•Yield on Corporate Bond
•Spread
of 1%
•Valuation(KRW 254.9
bn)
➢ Cash Flow estimated by applying Court Auction statistics by property type and location➢ Derived Investment Value: KRW 254.9 bn
※Appraisal value analysis
Number of Obligors: 1,483
Number of Collaterals: 1,744
46.7% value were from 258 factories
Only 11.3% were from residentials
17Korea Asset Management Corporation
IV-4. Case study 2 : Resurgence Korea One
ISSUER:
ASSET:SIZE:
COUPON RATE:
RATING:
Resurgence Korea One Securitization Specialty Co.
Real Estate & Mortgages purchased from KAMCO
KRW 174.9 bn(3 tranches) with 64 bn Subordinated notes
5.51% / 6.51% / 7.52%
EXPECTED FINAL MATURITY:
LISTING:NOTES OFFERD:
CREDIT FACILITY PROVIDER:
Feb 2002 / May 2002 / May 2002 (legal maturity:Nov. 2005)
Korea Development Bank (KRW 17.5 bn)
Korea Stock Exchange
In KRW
AAA / AA / A
REPAYMENT PRINCIPLE: On a Pass Through Basis
SELLER: Morgan Stanley’s Conduit
CREDIT ENHANCEMENT: Servicer Advance by Morgan Stanley
LEAD MANAGER:
ISSUE DATE:
Morgan Stanley Dean Witter, Seoul Branch
19 Oct. 2001
ORIGINATING BANKS: Commercial Banks in Korea
MASTER SERVICER: Morgan Stanley
18Korea Asset Management Corporation
IV-4. Case study 2 : Resurgence Korea-One ABS Issue Structure (2-Tier ABS)
MSDWTornado Inc.
MSDWXian Inc.
KAMCO ISSUER INVESTOR
Asset transferred
Asset transferred
Subordinated ABS
Subordinated ABS
Senior ABS
Asset transferred
Asset transferred
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Http : www.kamco.or.kr
Asem Tower, World Trade Center, 159-1 Samsung-dong, Kangnam-ku, Seoul, Korea
Phone: 82-2 2103-6131Fax: 82-2 2103-6149e-mail: [email protected]
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