Issuance of second-lien mortgage-backed securities reached more than $6.5 billion in the first quarter, putting this segment of the market on track for a record-breaking year, according to Moody's Investors Service."The higher issuance volume is mainly driven by the popularity of second-lien products for both borrowers and lenders," Moody's said in a report written by Marjan Riggi, a vice president and senior analyst. "Given property price appreciation and low interest rates, the increased equity in the borrowers' homes has provided them the opportunity to take out a second loan on considerably better terms than credit cards or other consumer loans." Moody's can be found online at http://www.moodys.com.
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