BNY Mellon may now offer a suite of domestic issuer and investor services, including alternative investment options on cash balances in asset-backed securitisation structures.
The new licence complements BNY Mellon’s money trust licence, increasing its trustee services capabilities from money receivables trusts to intangible property rights.
Gary Lew, head of the corporate trust for the Asia Pacific at BNY Mellon, commented: “Asset-backed securitisation structures are attractive to investors from a diversification standpoint, whether within the domestic market or for foreign investors investing into Asia.”
“The broadening of our trustee services to offer a comprehensive suite of solutions further supports our commitment to the steadily developing Korean ABS market.”
“The growth of the Korean ABS market has been accelerating since the Asset-Backed Securitisation Act was implemented in 1998. Korean issuers are using [these] structures not only as a lower cost tool to restructure maturing debt and secure liquidity, but also as an essential balance sheet tool that Korean lenders can use to convert loans to long term, fixed rate plans.”
BNY Mellon established its Seoul branch office in 1988 and was the trustee for Korea’s first covered bond issuance under the Covered Bond Act in 2015.