Low interest rate environment and continued innovation

• Low interest rates have led to dramatic growth in global RMBS

  • Massive wave of mortgage refinancings and first home purchases in the U.S., U.K., Australia and other countries

• Innovation is also a growth driver

  • Use of RMBS as collateral in CDOs
  • Proliferation of innovative mortgage products
    • Hybrid ARMs, negative amortization loans, silent seconds, interest-only loans, insured product, floating rate mortgages

Source: Harrison Scott Publications / Standard & Poor’s. Excludes confidential transactions; includes HELs transactions

’99-’04 CAGR = 39.5%

YOY % Change: 54.8%

Global Issuance

$ in billions

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