The dramatic fall in RMBS activity is clearly demonstrated by the numbers. According to Thomson Reuters, industry totals for the period covering the first quarter to the third quarter of 2008 only reached $176.3 billion compared with $829.5 billion over the same period last year.
This is a reflection of the lack of desire on the part of securitization players to come to market with residential mortgage deals. However, there were some big leaps in underwriting volume, specifically Barclays Capital, reported Thomson. It jumped to No. 4 from placing 15th in the first three quarters of last year.
Banc of America Securities - whose parent, over the quarter, finalized its purchase of Countrywide Financial and bought Merrill Lynch - reigned over the residential MBS manager rankings in agency and non-agency combined. BofA rose to first place from fifth over the same period last year with $24.6 billion in proceeds and a 14% market share. BofA had $56.8 billion in proceeds and a 6.9% market share in the first three quarters of 2007.
Credit Suisse, which placed fourth over the same period last year, rose to second place this year with $22.6 billion in proceeds and a 12.8% market share. Last year, Credit Suisse had $60.8 billion with a 7.3% market share. Like the rest of the market, JPMorgan's volume plummeted to $21.9 billion (12.4% market share) in the first three quarters of 2008, compared with $149.6 billion (18% market share) over the same period in 2007. JPMorgan's ranking also dropped to three from being No.1 for the period from first quarter to third quarter 2007.
Barclays, which shot up in the rankings this year, had $18 billion (10.2% market share) in proceeds, which is not far in terms of volume from where it was over the same period last year when it had $23 billion in proceeds (2.8% market share).
Rounding out the top five is Lehman Brothers - whose U.S. investment banking division was bought in the third quarter by Barclays after the bank filed for bankruptcy. Lehman, which was No. 2 last year, had $15.8 billion in proceeds and a 9% market share for the first three quarters. Over the same period last year, Lehman had $90.9 billion and an 11% market share.
Merrill Lynch, RBS Greenwich Capital, Citigroup Global Markets, UBS and Goldman Sachs round out the top 10-ranking RMBS managers for the last three quarters.
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