Mortgage Security Issuance Inches Up

The issuance of mortgage-related securities increased slightly in the first quarter of 2005 vs. the same period last year, even though the portion of that issuance from the government-sponsored enterprises declined 43.9%, according to The Bond Market Association.Issuance of mortgage-related securities inched up to $406.7 billion from $403.0 billion during the quarter, the association said. A combination of a relative decline in refinancing compared with that of recent record-setting periods and the GSEs' "focus on implementing capital and portfolio management strategies" were responsible for the decline in issuance in that category, while rates that are still historically low on a relative basis led to the net increase in issuance in the overall mortgage-related securities category (and some others), according to the association. The home equity area also saw increases during the quarter, the association said. The association can be found on the Web at http://www.bondmarkets.com.