Cagamas Berhad, the National Mortgage Corporation and leading securitisation house, was established in 1986 to promote the secondary mortgage market in Malaysia. Cagamas Berhad has, through the years, evolved and diversified its business model from that of a national mortgage corporation seeking to aid Malaysians with affordable housing, to becoming a leader in securitisation. It issues debt securities to finance the purchase of housing loans and other consumer receivables from financial institutions and non-financial institutions. The provision of liquidity at a reasonable cost to the primary lenders of housing loans encourages further financing of houses at an affordable cost.
The Cagamas Berhad model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas Berhad is the leading issuer of debt instruments, second only to the Government of Malaysia, the largest issuer of AAA debt securities as well as one of the top Sukuk issuers in the world.
Cagamas Berhad’s debt securities continue to be assigned the highest ratings of AAA and P1 by RAM Rating Services Berhad and AAA/AAAID and MARC-1/MARC-1ID by Malaysian Rating Corporation Berhad, denoting its strong credit quality.
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