Here’s another interesting fact regarding MBS per PIMCO:
“MBS are the Largest Segment of the U.S. Bond Market
With $5.6 trillion in mortgage-related debt outstanding as of June 30, 2005, mortgages are the largest segment of the U.S. bond market, accounting for 22.9% of all bond market debt outstanding, according to estimates by the Bond Market Association. For comparison, corporate bonds account for 20.4% of the market, and Treasury debt accounts for another 16.3%.”
“Mortgages are also among the most actively traded securities in the U.S. bond market. Primary dealers-the large banks authorized to deal directly with the Federal Reserve-traded on average more than $260 billion per day of agency MBS in 2005, according to data from the Bond Market Association and New York Federal Reserve Bank. For comparison, primary dealers traded about $20 billion per day of corporate bonds with maturities of more than one year in 2005.”
I’d be curious to see how this changes going forward.
