Global securitization volumes jumped 20 percent last year to $511.6 billion as JPMorgan Chase & Co. widened its lead as the top underwriter, according to newsletter Asset-Backed Alert.
JPMorgan managed the sales for $66.2 billion, or 12.9 percent, of the total offerings of securities backed by assets such as home mortgages, auto debt and speculative-grade company loans, according to the newsletter.
The bank’s share grew from 10.1 percent in 2011 as the New York-based firm managed $39.9 billion in sales of asset-backed securities tied to U.S. consumer or corporate borrowing, a category that excludes mortgage debt and so-called collateralized debt obligations. Barclays Plc and Bank of America Corp., the other top underwriters in that market, remained the second- and third-ranked global bookrunners.
Barclays handled 10 percent of the global total last year, up from 9.2 percent for the London-based bank, according to Asset-Backed Alert. Charlotte, North Carolina-based Bank of America’s share climbed to 8.7 percent, from 8 percent.
Worldwide securitization volumes are down from the record $2.57 trillion reached in 2006, a year before U.S. mortgage securities and CDOs began a collapse that would spark the worst financial crisis since the Great Depression.
Securitization fell to $330.6 billion in 2009, excluding bonds that were created outside the U.S. to be retained by the issuers and pledged as collateral for loans from central banks, according to Asset-Backed Alert.
The newsletter’s securitization tallies exclude government-backed U.S. home-loan bonds and repackagings of that debt called agency collateralized mortgage obligations, asset-backed commercial paper and the derivative portions of certain issues.