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Volume 2011 - Number 47

December 9, 2011

Downloads Available: Top Bank Ginnie Mae MBS Investors - 3Q11


Analysts Predict Increase in Ginnie Mae MBS Buys as Overseas Investors Seek Basel III Compliant Assets

Foreign investors are the leading purchasers of Ginnie Mae MBS and may reinvest next year only in Ginnies for “safety” and to prepare for new tougher rules on capital and liquidity under the Basel III accord, according to analysts. Foreign investors currently hold $620 billion of the $3.45 trillion in U.S. MBS, and half of that is Ginnie Mae MBS. JPMorgan Securities analysts expect the Ginnie share of foreign MBS holdings to increase in 2012. They also expect U.S. banks to increase their Ginnie Mae purchases. Purchases by overseas investors, with an extra...(Includes one data chart)

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Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
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