Spurred by persistently low short-term interest rates, as well as greater-than-expected prepayment fee collections, net-interest margin securitizations totaled $1.26 billion, the second-highest total to date, according to a new report issued by Standard & Poor's. While total volume was down from 4Q02's record of more than $1.4 billion, deal size is growing, averaging $70 million per transaction during 1Q03 quarter, up 55% from $45 billion in 4Q02.

The report, titled NIMs Quarterly Highlights, addresses issuance volume and performance of deals throughout the first quarter as well as the low rates that have stimulated mortgage lending and NIM issuance. S&P has scheduled a conference call to discuss its findings for Tuesday, May 20 (see upcoming events p.3).

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.