After being shut out from the growing foreign RMBS securitization sector of the ABS market in 2001, JPMorgan Securities has made a significant push in 2002, involved as either lead or co-manager on five of the six deals seen so far this year.
Most recently, JPMorgan split the books with Salomon Smith Barney on the $5 billion multi-currency U.K. mortgage securitization from HBOS plc/Halifax, dubbed Permanent Financing No. 1., that priced last week.
Already this year, JPMorgan has been lead manager on $3.38 billion in the sector, making it the second-leading underwriter of global foreign RMBS-backed issuance, just $300 million behind Salomon.
Earlier this year JPMorgan was lead manager for $880 million Australian mortgage-backed deal for St. Geroges Bank's Crusade Global Trust that priced in mid March. JPMorgan has been co-manager on the 2002 offerings from Macquarie Bank's PUMA Global No. 2, Northern Rock's Granite Mortgages, and Commonwealth Bank of Australia's Medallion Trust. The only transaction with which JPMorgan was not involved is the $1 billion Westpac Bank Aussie RMBS deal that priced in early March.
Throughout 2001, Credit Suisse First Boston was the sector's leading underwriter, with $6.3 billion of the sector. Salomon was second with $5.04 billion and Deutsche Bank Securities was third with $1.2 billion sold. In total, Australian and U.K. RMBS accounted for $13.5 billion of the domestic ABS market, which typically gets lost in the shuffle as it is grouped in with the home equity sector.
JPMorgan, the third leading ABS underwriter overall in 2001, was the leading underwriter of ABS through the first five months of the year.