KHFC gets covered bond away amid North Korea concerns

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KHFC gets covered bond away amid North Korea concerns

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Undated photo from North Korean News Agency shows North Korean leader Kim Jong-un inspecting a Korean People's Army tanks unit, in undisclosed location, North Korea. Photo released 20 May 2017. Photo by Balkis Press/ABACAPRESS.COM | Balkis Press/ABACA/ABACA/PA Images

Korean Housing Finance Corp (KHFC) enjoyed a strong reception for a five year covered bond this week. But the fact the deal was priced 25bp inside initial price talk yet still offered triple the pick-up to Canadian deals compared with last year, suggested a degree of uncertainty in the price discovery process.

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