International purchases of asset-backed securities are on the rise – HousingWireAugust 19, 2022
Asian nations and the Cayman Islands are the biggest holders of U.S. ABS
International holdings of U.S. asset-backed securities stood at $1.562 trillion as of June 30 of 2021, up from $1.489 trillion as of the identical date in 2020, in response to preliminary knowledge launched by the U.S. Division of the Treasury.
The Treasury report defines asset-backed securities (ABS) as together with mortgage-backed securities in addition to securities backed by the money flows from different asset swimming pools, corresponding to bank card receivables. The report, nonetheless, doesn’t provide a breakdown of the ABS by sort.
Nonetheless, the report does present some perception into the overseas demand for U.S. asset-backed securities in addition to the key holders of these securities by nation. Main the cost on that entrance is Japan, which held $332 billion in ABS as of June 30, 2021 — the latest knowledge accessible.
Rating second is Taiwan, with $245 billion in ABS as of the identical date. The third largest holder of ABS is China, at $217 billion.
The tax haven British abroad territory of the Cayman Islands ranked fourth, with $139 billion in ABS. Rating fifth is Canada, at $108 billion.
No different nation held greater than $100 billion in ABS as of June 30, 2021, in response to the report.
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“Closing survey outcomes, which can embody further element in addition to doable revisions to the preliminary knowledge, can be reported on April 29, 2022,” the Treasury report states. “The survey was undertaken collectively by Treasury, the Federal Reserve Financial institution of New York, and the Board of Governors of the Federal Reserve System.”
The whole worth of all overseas holdings of U.S. securities, together with long-term securities and debt, equities, asset-backed securities and short-term debt securities, stood at $27.289 trillion as of June 30, 2021, up from $21.954 trillion as of the identical date a 12 months earlier.
The 5 main nations holding U.S. securities throughout all classes, the Treasury report exhibits, are Japan, $2.767 trillion; the UK, $2.631 trillion; the Cayman Islands, $2.467 trillion; Luxembourg, $2.301 trillion; and Canada, $1.977 trillion. (China ranks sixth, with $1.575 trillion, trailed intently by Eire, at $1.503 trillion.)
The whole worth of all U.S. securities held by “overseas official establishments” (authorities companies) as of June 30, 2021, was $6.489 trillion, or about 24% of all overseas holdings, the report exhibits.
The identical determine for asset-backed securities as of that date, nonetheless, was $645 billion, representing 41.2% of all overseas ABS holdings, the Treasury report present.
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Ginnie Mae isn’t budging on its proposal to place a 250% danger weight on gross mortgage servicing rights for nonbanks.
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