Global ABS 2012 Recap: Another Milepost on the Road to Recovery

Full year statistics for new issuance of securitized debt in 2012 are now in and while there is still a long way to go, on a year-over-year basis, the news is very good.

For the full year, new issuance was up by more than 20% and surpassed the half trillion mark for the first time since the financial crisis.  While the US$511 Billion is a far cry from the record US$2.7 Trillion issued in 2006, the strong mix of asset classes and markets showing signs of consistent activity has to be reassuring to those following this long recovery.

JP Morgan, Barclays and Bank of America combined to underwrite nearly one-third of the new debt issued, with JPM leading the way with a nearly 13% market share.  We suspect that as market activity continues to recover, perhaps an accelerating pace over the next several months, this will lead to further investment by these and other banks in their structured finance banking groups.  This would obviously be good news for the many other professionals that support the issuance process including the law firms, accountants, tech firms, etc.

About markferraris
Managing Principal Orchard Street Partners LLC

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