Unlike the previous week, which saw over $21 billion in originator supply, last week's levels averaged between $1.5 billion and $2.0 billion per day. At this time, the Street is estimating current monthly fixed-rate issuance at between $120 billion and $140 billion. Looking ahead, Lehman Brothers predicts supply in lower coupons over the next year will hit nearly $1.4 trillion.
While gross supply is high, net fixed-rate issuance has been declining. According to JPMorgan Securities, net issuance for October is looking flat, following third quarter net issuance that was negative.