Wrapped ABS increased significantly from the previous quarter as well as over the similar quarter last year, driven by the growth in the real estate sector of the ABS market. Overall wrapped activity totaled $27.5 billion of the $218.5 billion of ABS sold in 3Q04, accounting for more than 12.5% of the total volume.

Wrapped real estate ABS totaled over $17 billion, up 44% from the second quarter. Boosting wrapped supply in the quarter were a pair of trends - increased HELOC supply and single-tranche guarantys on senior classes already structured to triple-A. The latter phenomenon is largely driven by GSE demand for credit diversity, while maintaining portfolio growth.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.