Third-quarter issuance of global mortgage-backed and asset-backed securities fell 53% from a year earlier, to $306.6 billion, the data provider Dealogic Holdings PLC said Friday.
The number of deals fell 58.4%, to 413.
Collateralized debt obligation issuance fell 58%, to $41.5 billion. The number of CDO deals fell 57.3%, to 102.
The collapse in third-quarter activity has dragged down figures for the year to date. Dealogic said MBS and ABS issuance in the first nine months fell 6% from a year earlier to $1.87 trillion. However, CDO issuance rose 5%.
Structured finance has been particularly hard hit by problems in the U.S. subprime mortgage market. Because some mortgage-backed securities were backed by U.S. subprime mortgages, and some of those deals in turn were repackaged into CDOs, investors have shied away from investing in any asset-backed securities until the extent of possible losses is clear.
