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MBS Transactions Nearly 80% Down

The volume of mortgage-backed security transactions totaled $70.77 billion in the second quarter, down nearly 80% from $348.17 billion in the second quarter of 2007, according to Thomson Reuters.

The figures are preliminary because the numbers are revised upward - often significantly - as additional deals are reported after the end of each quarter.

Banc of America Securities LLC topped the rankings of MBS underwriters in the second quarter with a 17.5% market share, compared with 8% in the second quarter of 2007.

Deals managed by BoA Securities totaled $12.42 billion, down from the $27.99 billion recorded a year earlier, according to the data.

Credit Suisse finished second in the Thomson Reuters rankings with a 13.7% market share, up from 7.2% a year earlier, while its volume totaled $9.67 billion, down from $25.15 billion.

Barclays Capital ranked third, with a market share of 12.9%, up from 3.5% in the second quarter of 2007, and its volume totaled $9.14 billion, down from $12.15 billion a year earlier.

Rounding out the top 10 for the quarter were Lehman Brothers, with a 10.8% market share; Merrill Lynch, with 8.2%; JPMorgan, with 8.1%; Citi, with 6.4%; RBS, with 6.1%; Deutsche Bank, with 5.7%; and UBS, with 4%.

The Thomson Reuters data for underwriters of mortgage-backed debt are compiled for securities pools that are at least 50% backed by first-lien mortgages and at least 50% by mortgages with a principal balance of $300,000 or more.

The company also ranks managers of asset-backed securities, which include those backed by real estate-related debt such as second-lien loans, home-equity lines of credit, manufactured housing contracts and home improvement loans.

The volume of ABS deals also plummeted, totaling $66.91 billion in the second quarter, compared with the $329.05 billion recorded a year earlier, according to Thomson's numbers.

Citi topped the ABS category with an 18.9% market share, up from 11.2% a year earlier. It was followed by JPMorgan, with 16.8%; BoA Securities, with 13.3%; Barclays Capital, with 8.6%; and Deutsche Bank, with 8.5%.

The rest of the top 10 were RBS, with a 6.1% market share; Merrill Lynch, with 5.2%; Morgan Stanley, with 4.6%; Wachovia Corp., with 4.2%; and Credit Suisse, with 3.6%. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/

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