Globalization of Mortgage-Backed Securities

Thursday, January 1st, 1987 at 12:00 am by Henry A. Fernandez
Henry A. Fernandez, Globalization of Mortgage-Backed Securities, 1987 Colum. Bus. L. Rev. 357

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.

Author Information

Mr. Fernandez is a senior associate with the investment banking firm of Morgan Stanley & Co., Incorporated, New York.