Mortgage-Bond Issuance in U.S. More Than Triples to $7.4 Billion
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Issuance of U.S. home-loan bonds without government backing has more than tripled this year to $7.4 billion, according to Deutsche Bank AG, as debt created before the housing slump rallies.
Notes sold in so-called non-agency securitizations of new loans, all of which were prime “jumbo” mortgages, reached $3.2 billion, Deutsche Bank analysts Ying Shen and Jason Wu wrote today in a report. Sales tied to older mortgages totaled $2.4 billion, while securities backed by non-performing debt were $1.8 billion. Issuance fell 13 percent last year to $2 billion.