Fannie, Freddie, Ginnie bonds nearly offset dwindling private securitization
Nearly every single mortgage bond issued today comes from either Fannie Mae, Freddie Mac or Ginnie Mae.
Since there is very little private residential mortgage-backed securities issuance, the levels outstanding continue to drop.
It's finally to a point, according Howard Esaki, Global Head of Structured Finance Research at Standard & Poor's, where agency debt is eclipsing the once massive private market.
"The rise in agency RMBS outstanding almost offset the decline in the non-agency sector in Q2, according to Fed flow-of-funds data," Esaki said. "$10trn in home mortgage debt remained outstanding, down $53bn q/q, $254bn y/y, and off more than a $1.2tn from YE 2007. The share held by ABS issuers was off $46bn q/q, $180bn y/y, and $1.2tn from the 2007 peak. Agency MBS increased $40bn q/q, and $120bn y/y."