New issue activity of agency MBS reached $951.1 billion during the first nine months of this year, up from $761.6 billion issued in the same period in 2001, according to a recent report by The Bond Market Association (BMA). The numbers are up by 24.9%.

On a quarter-to-quarter basis, the report said that issuance rose up to $313.5 billion in the third quarter of 2002, up by13% from issuance in the second quarter. Current issuance increased by 3.8% from issuance in the third quarter of 2001.

Fannie Mae's issuance increased to $471.6 billion in the first three quarters of 2002, up from the $366.1 billion issued through the third quarter last year. This is a 28.8% increase.

Meanwhile, new issue volume by Freddie Mac reached $351 billion over the first nine months of the year. This is up by 30.7% compared to 2002. Last year, $268.5 billion was issued in the same period.

Issuance volume of Ginnie Mae's MBS went up to $128.5 billion over the first three quarters in 2002, which is relatively unchanged from the $127 billion issued in the same period in 2001.

The report stated that agency CMO issuance surged as well. Issuance in the agency CMO market increased to $369.3 billion during the first three quarters of this year, representing more than a 90% increase from last year. During the same period last year, $193 billion was issued.

The BMA report also mentioned that daily trading volume in agency MBS by primary dealers averaged $145.4 billion in the first three quarters of this year. This is up by 39.5% from the average daily trading volume of $104.2 billion during the same period last year.

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