|
SECURITIES |
|
 |
 |
ASSET-BACKED SECURITIES
Asset-backed securities (ABS) are bonds that represent pools of loans of similar types, duration and interest rates. By selling their loans to ABS packagers, the original lenders recover cash quickly, enabling them to make more loans. The asset-backed securities market has grown as different types of loans are securitized and sold in the investment markets. Asset-backed securities may be insured by bond insurers. Nearly 70 percent of ABS consist of bundled mortgages, see also Chapter 9, Mortgage Industry.
| |
|
ASSET-BACKED SECURITIES OUTSTANDING, 2006
($ billions)
|
Amount outstanding |
Percent of total |
| Home equity | $581.2 | 27.3% |
| Credit card | 339.9 | 16.0 |
| CBO/CDO (1) | 299.4 | 14.1 |
| Automobile | 202.4 | 9.5 |
| Student loan | 183.6 | 8.6 |
| Equipment leases | 53.1 | 2.5 |
| Manufactured housing | 28.8 | 1.4 |
| Other | 442.0 | 20.7 |
| Total | $2,130.4 | 100.0% |
|
(1) Collateralized bond obligations/collateralized debt obligations.
Source: The Securities Industry and Financial Markets Association. |
| - Home equity loans accounted for 27.3 percent of asset-backed securities (ABS) outstanding in 2006, compared with 16.8 percent in 1997. Home equity ABS amounts outstanding rose from $90.2 billion to $581.2 billion during the same period.
| |
|
ASSET-BACKED SECURITY SOURCES, 2003 AND 2007
(1) Securities of federal mortgage pools backing privately issued collateralized mortgage obligations (CMOs). In CMOs, mortgage principal and interest payments are separated into different payment streams to create bonds that repay capital over differing periods of time.
(2) Mortgages backing privately issued pool securities and CMOs.
(3) Treasury securities accounted for less than 1 percent in 2003.
Source: Board of Governors of the Federal Reserve System, June 5, 2008.
| |
|
ASSET-BACKED SECURITY SOURCES, 1998-2007
($ billions, end of year)
Year |
Agency securities (1) |
Mortgages (2) |
Consumer loans |
Business loans |
Trade receivables |
Treasury securities |
Total |
| 1998 | $116.3 | $478.4 | $393.9 | $85.9 | $85.0 | $0.0 | $1,159.4 |
| 1999 | 154.4 | 551.9 | 456.7 | 82.6 | 67.2 | 0.0 | 1,312.8 |
| 2000 | 162.9 | 618.0 | 528.4 | 89.8 | 83.3 | 0.1 | 1,482.6 |
| 2001 | 196.5 | 740.0 | 598.0 | 108.3 | 89.1 | 0.5 | 1,732.4 |
| 2002 | 271.9 | 851.2 | 633.3 | 105.0 | 83.5 | 0.9 | 1,945.8 |
| 2003 | 356.4 | 1,021.6 | 596.8 | 103.9 | 94.7 | 2.8 | 2,176.2 |
| 2004 | 353.2 | 1,459.7 | 571.5 | 105.3 | 106.6 | 8.0 | 2,604.3 |
| 2005 | 319.6 | 2,131.5 | 604.0 | 88.5 | 102.9 | 27.7 | 3,274.1 |
| 2006 | 347.3 | 2,737.9 | 664.2 | 90.2 | 149.6 | 57.5 | 4,046.7 |
| 2007 | 378.1 | 2,918.2 | 688.6 | 81.0 | 80.0 | 79.8 | 4,225.7 |
(1) Securities of federal mortgage pools backing privately issued collateralized mortgage obligations (CMOs). In CMOs, mortgage principal and interest payments are separated into different payment streams to create bonds that repay capital over differing periods of time.
(2) Mortgages backing privately issued pool securities and CMOs.
Source: Board of Governors of the Federal Reserve System, June 5, 2008. |
| |
| |
|
|
|
