Historically low interest rates and continued innovation in RMBS

• Despite increases in interest rates, they are still historically low and 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

• Higher securitization rate

• Innovation is also a growth driver

  • Use of RMBS as collateral in CDOs
  • Proliferation of innovative mortgage products
    • Hybrid ARMs
    • 40-year amortization
    • Negative amortization loans
    • Silent seconds
    • Interest-only loans

Source: Harrison Scott Publications / Standard & Poor’s. Does not include confidential transactions; Includes HELs transactions

’99-’05 CAGR = 39.7%

22.6%

$ B

Global Issuance

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