Looking forward to ABS

The introduction of an asset-backed securities law in Taiwan earlier this year is attracting banks from across the region, keen to be part of what could be the ‘next Korea’ for Asia’s ABS market. Mia Trinephi reports

On the heels of South Korea, Taiwan is becoming a hot destination for the region’s securitisation specialists. While Taiwan’s asset-backed securities (ABS) market is unlikely to grow as large as South Korea’s, at least in the near term, observers reckon that it has the potential to be one of the region’s most vibrant ABS markets.

The well-capitalised Taiwanese banks are looking at securitisation as a risk management tool to clean up their balance sheets, rather than as a funding source, say