THE GLOBAL SECURITIES MARKET: GLOBALIZATION OF MORTGAGE-BACKED SECURITIES
In: Columbia Business Law Review, Jg. 1987 (1987), S. 357
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The mortgage-backed securities market is a relatively recent phenomenon. Although its beginning dates only to 1970, the industry has already surpassed, in terms of dollars invested, the markets for both corporate bonds and municipal bonds. in fact, it has the potential to become larger than the U.S. Treasury market in the near future. An important factor contributing to this rapid growth has been the development of the collateralized mortgage obligation ("CMO"). In dollar terms alone, the use of the CMO has been substantial: issues of CMOs since July 1983 have exceeded $ 90 billion. This remarkable growth in the domestic market has stimulated the expansion of mortgage-backed securities into the international arena. In early 1987, the first British mortgages were securitized in the United Kingdom. This issue of approximately $ 75 million was organized by the National Home Loan Building Society, and promises to be the beginning of a significant mortgage market in the United Kingdom. Other countries which have begun securitizing mortgages include Canada and Australia. In the discussion that follows, consideration will be devoted to the historical development of the mortgage-backed securities market, the reasons for its internationalization, and anticipated future developments. I. HISTORICAL DEVELOPMENT The evolution of the mortgage-backed securities market has been rapid, and an examination of its development may prove useful in predicting changes certain to continue. The progress has occurred against the backdrop of major changes in the United States housing finance industry. Traditionally, housing finance was largely a function of savings ...
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THE GLOBAL SECURITIES MARKET: GLOBALIZATION OF MORTGAGE-BACKED SECURITIES
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Autor/in / Beteiligte Person: | FERNANDEZ, HENRY A. |
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Zeitschrift: | Columbia Business Law Review, Jg. 1987 (1987), S. 357 |
Veröffentlichung: | 1987 |
Medientyp: | academicJournal |
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