yuzq 2008-7-17 13:24
20080716-Mirae Asset-Korea’s Exposure to Fannie Mae
Combined exposure of China and Japan to reach US$600bn
As of June 30, 2007, China had investments totaling US$467bn in US
treasuries and an additional US$376bn in securities issued by governmentsponsored
agencies including Fannie Mae. Japan’s exposure as of June 30,
2007 was US$226bn in securities issued by government-sponsored agencies.
Korea’s exposure estimated at no more than $500bn
Data for Korea’s investments has not yet been disclosed by the US. As we
have estimated the magnitude of Korea’s exposure to the US MBS market
under the assumption that Korea has invested a similar percentage of its
foreign reserves as have other nations, Korea’s exposure is likely to be
upwards of US$50bn (roughly 20% of Korea’s US$258bn in foreign reserves).
In addition, the US has disclosed that as foreign official institutions’ share
make up approximately 50% of total investments in government-sponsored
agencies, the actual exposure of the BOK should be much lower than our
estimation of US$50bn.
Value of Foreign Holdings of US