A new report from Deutsche Bank AG has found that U.S. securitization issuances that were not backed by the federal government more than tripled this year, reaching $7.4 billion.
Bloomberg News reports that non-agency securitizations made up $3.2 billion of the issuance, while sales tied to older mortgages accounted for $2.4 billion and securities backed by non-performing debt totaled $1.8 billion.
‘The rising new issuance should attract more investors to the non-agency market,’ says Deutsche Bank. ‘However, the supply of new paper should not dampen demand for higher-yielding legacy [securities].’