Concerns about the fluctuating housing market that plagued the first half of this year are doing little to squelch RMBS appetite. According to market reports, RMBS remains the sector of choice as investors continue to seek it out as a safe haven from economic uncertainties, such as the war in Iraq.

Europe saw more than 51 billion (US$58 billion) in mortgage-backed securities issued during the first half, almost double the amount issued in the same period last year. Analysts at Royal Bank of Scotland, who were a bit surprised by the massive volume, attributed it to investors taking advantage of a favorable market. First-half issuance in the U.K. was largely dominated master trusts, which accounted for GBP24.8 billion (US$28.2 billion) of the GBP31.9 billion (US$36.2 billion) issued in that country.

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