July 2017, Asset-Backed Securities Value Reached Rp 6 Trillion

Asset-Backed Securities (ABS) and Collective Investment Contracts (CIC) ABS listed on the Indonesia Stock Exchange as of July 2017 reached Rp 5.9 trillion. This comprises Rp 2.46 trillion in ABS and Rp 3.47 trillion in CIC ABS. Meanwhile, outstanding ABS reached Rp 2.15 trillion, while outstanding CIC ABS amounted to Rp 1.1 trillion.

The Danareksa BTN 03 – KPR CIC ABS, listed on December 13, 2012, was the largest CIC ABS, reaching Rp 925 billion, with a 7.75 percent interest rate. Meanwhile, the Danareksa BTN 05 – KPR Class A CIC ABS, listed on December 3, 2014, with a value of Rp 723.5 billion, had the highest interest rate at 10 percent.

CIC ABS is an investment alternative where investment managers pool funds from the public, which are then used to purchase financial assets in the form of receivables, such as mortgage receivables (KPR) from mortgage-providing banks. The mortgage-providing banks can sell their receivables to obtain funds, allowing them to re-lend to the public. CIC ABS holders will receive profits in the form of coupon payments (interest) according to the CIC ABS credit rating.