MBS Issuance Skyrockets

Issuance of agency mortgage-backed securities shot up 106.2% in the first half of 1998 compared with MBS issuance in the first half of 1997, according to The Bond Market Association.The issuance totaled $324.2 million, compared with $157.3 billion the year before. The trade group attributed the growth to surging originations tied to low interest rates. Fannie Mae's MBS issuance volume, which accounted for 43.8% of the market, mushroomed to $142.1 billion, up 131.8% from $61.3 billion in the first half of last year, the association said. Freddie Mac's issuance jumped by nearly as much, rising 124.2% to $113.2 billion from $50.5 billion the year before. Ginnie Mae's volume rose 51.4% in the first half, from $45.5 billion last year to $68.9 billion, according to the report. In the asset-backed securities sector, home equity loans represented 42% of ABS volume in the first half, climbing 56.2% to $42.9 billion. The once-dominant credit card ABS accounted for less than half that amount, rising 31.7% to $19.3 billion, the trade group reported. The Bond Market Association's website address is http://www.bondmarkets.com.