The Mortgage Backed Securities Market Report Segments the Industry Into by Type (Commercial MBS, Residental MBS), by Issuer (Government Sponsored Enterprises (GSEs), Government Agencies, Private Financial Institutions), and by Geography (North America, Europe, Asia Pacific, South America, Middle East). This Report Offers Five Years of Historical Data and Five-Year Forecasts.

The global Mortgage-Backed Security market is poised for robust growth, with its market size projected to reach XX million in 2033, driven by a CAGR of XX% during the forecast period 2025-2033. Key drivers fueling this growth include increasing demand for residential and commercial mortgages, government support for housing markets, and the ongoing trend of securitization. However, factors such as rising interest rates, economic uncertainties, and regulatory challenges may pose restraints to market expansion. The market is segmented into types (commercial MBS, residential MBS) and applications (commercial banks, real estate enterprises, trust plans). Residential MBS dominate the market due to the high demand for home loans. Prominent players in the market include Construction Bank, ICBC, and Bank of China, among others. North America and Asia Pacific are expected to be key regional markets, with the US, China, and India driving growth. The study period for this analysis is 2019-2033, with the base year being 2025 and the forecast period extending from 2025 to 2033. Mortgage-backed securities (MBS) are financial instruments that are backed by a pool of mortgages. They are typically issued by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac, but can also be issued by private banks and investment firms. MBS offer investors a way to invest in the housing market without having to purchase a physical property.

The year 2021 saw the peak in issuance of residential mortgage backed securities (MBS), at *** trillion U.S. dollars. Since then, MBS issuance has slowed, reaching *** trillion U.S. dollars in 2023. What are mortgage backed securities? A mortgage backed security is a financial instrument in which mortgages are bundled together and sold to investors. The idea is that the risk of these individual mortgages is pooled when they are packaged together. This is a sound investment policy, unless the foreclosure rate increases significantly in a short amount of time. Mortgage risk Since mortgages are loans backed by an asset, the house, the risk is often considered relatively low. However, the loan maturities are very long, sometimes decades, meaning lenders must factor in the risk of a shift in the economic climate. As such, interest rates on longer mortgages tend to be higher than on shorter loans. The ten-year treasury yield influences these rates, since it is a long-term rate that most investors accept as risk-free. Additionally, a decline in the value of homeowner equity could lead to a situation where the debtor is “underwater” and owes more than the home is worth.

Graph and download economic data for Rest of the World; U.S. Mortgage-Backed Securities and Other U.S. Asset-Backed Bonds; Asset, Market Value Levels (BOGZ1LM263063603Q) from Q4 1945 to Q2 2025 about asset-backed, mortgage-backed, market value, bonds, securities, assets, and USA.

Agency MBS Market Outlook

According to our latest research, the global Agency MBS market size reached USD 9.8 trillion in 2024, with a robust compound annual growth rate (CAGR) of 5.1% observed over the past year. The market is expected to grow steadily, reaching an estimated USD 15.7 trillion by 2033, driven by factors such as heightened investor demand for stable fixed-income instruments, evolving regulatory frameworks, and ongoing innovation in mortgage-backed securities structuring. As per our latest research, the Agency MBS market is witnessing significant momentum due to its perceived safety, liquidity, and the continued support from government-sponsored enterprises (GSEs).

One of the primary growth factors for the Agency MBS market is the persistent demand for yield in a low-interest-rate environment. Institutional investors, including pension funds, insurance companies, and asset managers, are increasingly allocating capital to Agency MBS due to their attractive risk-adjusted returns and implicit government backing. The market’s resilience during periods of economic uncertainty further enhances its appeal, with investors seeking the safety net provided by Ginnie Mae, Fannie Mae, and Freddie Mac. Additionally, the ongoing expansion of the global middle class and rising homeownership rates, particularly in North America and Asia Pacific, are fueling the origination of underlying mortgages, thereby expanding the pool of eligible assets for securitization.

Technological advancements and digitalization are also playing a pivotal role in the Agency MBS market’s growth trajectory. Enhanced data analytics, automated underwriting processes, and blockchain-based securitization platforms are improving transparency, efficiency, and risk assessment in the mortgage origination and securitization value chain. These innovations are not only reducing operational costs but also enabling more granular risk segmentation and tailored product offerings. Moreover, regulatory reforms aimed at increasing market stability—such as stricter capital requirements and enhanced disclosure standards—are fostering greater investor confidence and participation, particularly among global institutional investors seeking diversification.

Another key driver is the evolving regulatory and macroeconomic landscape. The proactive involvement of central banks, especially the U.S. Federal Reserve, in purchasing Agency MBS as part of quantitative easing programs has provided a significant liquidity buffer and compressed spreads, making these securities even more attractive. Furthermore, the gradual normalization of monetary policy is expected to create new opportunities for active portfolio management and trading strategies within the Agency MBS space. The combination of strong government support, robust investor demand, and continuous product innovation is positioning the Agency MBS market for sustained growth over the forecast period.

Regionally, North America continues to dominate the Agency MBS market, accounting for over 70% of global issuance in 2024, driven by the deep and liquid U.S. secondary mortgage market, strong regulatory oversight, and the presence of major GSEs. Europe and Asia Pacific are emerging as growth frontiers, with increasing adoption of securitization frameworks and rising cross-border investment flows. While Latin America and the Middle East & Africa currently represent smaller shares, ongoing financial sector reforms and efforts to deepen local capital markets are expected to provide new growth avenues in these regions. Overall, the global Agency MBS market is characterized by a dynamic interplay of macroeconomic, regulatory, and technological factors, underpinning its long-term growth outlook.

Product Type Analysis

The Agency MBS market is broadly segmented by product type into Pass-Throughs, Collateralized Mortgage Obligations (CMOs), Stripped MBS, and Others. Pass-Through securities remain the dominant product type, accounting for appr

Asset Backed Securities Market size was valued at USD 2510.83 Billion in 2023 and is projected to reach USD 3757.14 Billion by 2031, growing at a CAGR of 5.70% from 2024 to 2031.Key Market Drivers:Growing demand for alternative investments: With traditional assets offering lower returns, investors are increasingly turning to ABS for diversification and higher yields. The global ABS market is expected to grow, driven by its appeal to institutional investors seeking stable cash flows in volatile market environments.Rising consumer credit growth: The global consumer credit market, valued at over $15 trillion, is a key driver for ABS, especially in sectors like auto loans, credit cards, and personal loans. With increased borrowing, particularly in emerging markets, the securitization of these loans through ABS provides lenders with additional liquidity.

The volume of mortgage-backed securities issuance fluctuated significantly in the United States between 2014 and 2024. In 2024, the volume of the mortgage-backed securities issuance in the United States amounted to 1.6 trillion U.S. dollars.

Global Mortgage Backed Security market size 2025 was XX Million. Mortgage Backed Security Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Mortgage-Backed Securities Market Outlook

According to our latest research, the global mortgage-backed securities (MBS) market size reached USD 11.2 trillion in 2024, driven by robust demand for securitized debt instruments and a thriving real estate sector. The market is projected to expand at a CAGR of 6.1% from 2025 to 2033, with the total market value forecasted to reach USD 19.1 trillion by 2033. This growth trajectory is underpinned by increasing investor appetite for fixed-income assets, ongoing financial innovation, and supportive regulatory frameworks that continue to shape the evolution of the global MBS landscape.

The primary growth factor for the mortgage-backed securities market is the persistent demand for yield in a low-interest-rate environment. Institutional investors, such as pension funds, insurance companies, and mutual funds, are continuously seeking stable, long-term returns to meet their portfolio objectives. MBS offer attractive risk-adjusted yields compared to other fixed-income alternatives, making them a preferred choice for these investors. In addition, the diversification benefits provided by pooling mortgage loans into securities help mitigate individual credit risk, further enhancing their appeal. The market has also witnessed a resurgence in investor confidence, thanks to improved underwriting standards and enhanced transparency following the 2008 financial crisis, which has contributed to sustained growth in the issuance and trading of mortgage-backed securities.

Another significant driver for the MBS market is the increasing sophistication of financial markets and the proliferation of securitization techniques. Financial institutions and government agencies have developed advanced structuring mechanisms, such as tranching and credit enhancement, which allow for the tailoring of MBS products to meet specific investor requirements. This has led to the creation of a wide array of MBS types, including residential MBS (RMBS), commercial MBS (CMBS), and collateralized mortgage obligations (CMOs), catering to diverse risk-return profiles. The integration of technology and data analytics in the origination and servicing of mortgage loans has also streamlined the securitization process, reducing operational costs and improving the accuracy of risk assessment. As a result, issuers can efficiently package and distribute mortgage assets, further fueling market expansion.

Regulatory support and favorable government policies have played a pivotal role in bolstering the MBS market. In major economies such as the United States, government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae have been instrumental in providing liquidity and stability to the housing finance system. These agencies guarantee or directly issue a significant portion of MBS, thereby enhancing investor confidence and lowering funding costs for mortgage originators. Recent regulatory reforms aimed at increasing transparency, standardizing disclosure practices, and strengthening risk retention requirements have further contributed to the resilience and attractiveness of the MBS market. As policymakers continue to prioritize housing affordability and financial market stability, the regulatory landscape is expected to remain supportive of MBS growth in the coming years.

Collateralized Mortgage Obligations (CMOs) have become a significant component of the mortgage-backed securities market, offering unique benefits to both issuers and investors. These structured financial products allow for the creation of multiple tranches with varying risk and return profiles, providing investors with tailored options to meet their specific investment objectives. The flexibility of CMOs in managing interest rate and prepayment risks makes them particularly attractive to institutional investors seeking to optimize their portfolios. As the market continues to evolve, the role of CMOs in providing customized investment solutions is expected to grow, driven by advancements in technology and data analytics that enhance the structuring and risk management processes.

From a regional perspective, North America remains the dominant market for mortgage-backed securities, accounting for the majority of global issuance and trading activity. The well-established securitization infrastructure, deep investor base, and active part

In 2024, Market Research Intellect valued the Mortgage-Backed Security Market Report at USD 12 trillion, with expectations to reach USD 15 trillion by 2033 at a CAGR of 3.1%.Understand drivers of market demand, strategic innovations, and the role of top competitors.

Mortgage-Backed Securities Market Outlook

According to our latest research, the global Mortgage-Backed Securities (MBS) market size reached USD 12.8 trillion in 2024, with a compound annual growth rate (CAGR) of 5.1% from 2025 to 2033. The market is expected to grow steadily, reaching a forecasted value of USD 20.1 trillion by 2033, driven by increasing demand for diversified investment instruments, ongoing government support for housing finance, and the robust expansion of secondary mortgage markets worldwide. This growth reflects a combination of strong investor appetite for fixed-income assets and continued innovation in securitization structures, as per our most recent research findings.

A major growth factor shaping the Mortgage-Backed Securities market is the persistent global demand for yield-generating assets in a low-interest-rate environment. Institutional investors, such as pension funds and insurance companies, are increasingly allocating capital to MBS products to secure stable, long-term returns. This trend is further amplified by the relative stability of mortgage payments compared to other forms of debt, making MBS an attractive asset class for risk-averse investors. Additionally, the standardization and transparency of MBS structures have improved significantly over the past decade, restoring investor confidence and facilitating greater market participation. The integration of advanced analytics and risk management tools has also played a crucial role in enhancing the assessment of underlying mortgage pools, thereby reducing perceived risk and encouraging further investment.

Technological advancements and regulatory reforms have also been pivotal in accelerating the growth of the Mortgage-Backed Securities market. The adoption of blockchain, artificial intelligence, and big data analytics in the securitization process has led to improved efficiency, transparency, and accuracy in the origination and servicing of mortgage loans. These innovations have enabled market participants to better manage credit risk, streamline due diligence, and enhance the overall liquidity of MBS instruments. Furthermore, post-2008 regulatory measures, such as the implementation of Basel III and Dodd-Frank Act provisions, have strengthened the resilience of the MBS ecosystem by introducing stricter capital requirements and greater transparency. These measures have not only mitigated systemic risks but also attracted a broader spectrum of investors, including those previously wary of mortgage-backed instruments.

Global macroeconomic trends, including urbanization, rising homeownership rates, and expanding real estate markets, are fueling the underlying mortgage origination volumes that support the MBS market. Emerging economies, particularly in Asia Pacific and Latin America, are witnessing rapid growth in residential and commercial property markets, creating new opportunities for the securitization of mortgage assets. In developed markets such as North America and Europe, the ongoing evolution of housing finance systems and increased government intervention through agencies like Fannie Mae, Freddie Mac, and the European Central Bank have provided further impetus to MBS issuance. This sustained growth in mortgage origination and securitization activity is expected to underpin the long-term expansion of the global MBS market.

Regionally, North America continues to dominate the Mortgage-Backed Securities market, accounting for the largest share due to its mature housing finance infrastructure and the presence of prominent government-sponsored enterprises. However, Europe and Asia Pacific are rapidly gaining traction, propelled by regulatory harmonization, financial innovation, and the increasing involvement of private institutions. In Latin America and the Middle East & Africa, the market is at a nascent stage but is projected to grow at a faster pace over the coming years, supported by financial sector reforms and rising demand for alternative investment products. This regional diversification is expected to further enhance the stability and resilience of the global MBS market.

Security Type Analysis

The Mortgage-Backed Securities market is segmented by security type into Residential MBS, Commercial MBS, Collateralized Mortgage Obligations (CMOs), and Others. Among these, Residential Mortgage-Backed Securities (RMBS) represent the largest segment, driven by the sheer volume of residential

Residential Mortgage-Backed Securities (RMBS) Market Outlook

According to our latest research, the global Residential Mortgage-Backed Securities (RMBS) market size reached USD 2.38 trillion in 2024, demonstrating robust activity across primary and secondary markets. The RMBS market is expected to expand at a CAGR of 6.1% during the forecast period, with the total market value projected to reach USD 4.06 trillion by 2033. Key growth drivers include ongoing demand for housing finance, the resurgence of securitization activity in developed economies, and evolving investor appetite for diversified fixed-income products.

The growth trajectory of the RMBS market is fundamentally underpinned by the sustained demand for residential mortgage loans globally. As homeownership remains a core aspiration in both developed and emerging economies, financial institutions continue to originate large volumes of residential mortgages. Securitizing these loans into RMBS allows lenders to recycle capital, manage risk exposure, and meet regulatory requirements. Additionally, the low-interest-rate environment seen in many regions during the last decade has spurred refinancing activity and increased the volume of eligible mortgages for securitization. These macroeconomic factors, coupled with supportive government policies in several key markets, have contributed to the steady expansion of the RMBS landscape.

Another significant growth factor is the rising sophistication and risk appetite among institutional investors. With traditional fixed-income yields remaining compressed, RMBS offer an attractive risk-return profile, particularly for pension funds, insurance companies, and asset managers seeking higher yields without exposing themselves to excessive credit risk. The development of advanced credit rating methodologies and enhanced transparency in RMBS structures have further bolstered investor confidence. Moreover, the diversification of RMBS products, including the expansion of non-agency RMBS and the inclusion of green and social housing mortgages, is broadening the investor base and driving incremental demand in global capital markets.

Technological advancements and regulatory reforms are also shaping the RMBS marketÂ’s growth. Automation in loan origination, servicing, and securitization processes has improved operational efficiency and reduced transaction costs. Simultaneously, regulatory bodies have implemented stricter disclosure and risk retention requirements post-2008, enhancing the resilience and credibility of the market. These measures have not only restored investor trust but have also attracted new participants, including non-bank financial institutions and fintech platforms. As a result, the RMBS market is witnessing heightened innovation in structuring and distribution, further fueling its upward momentum.

Regionally, North America continues to dominate the RMBS market, accounting for the largest share due to the sheer scale of the U.S. mortgage industry and the presence of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Europe is also witnessing renewed activity, particularly in the UK and Germany, as regulatory clarity and investor confidence return. Meanwhile, the Asia Pacific region is emerging as a high-growth market, driven by rapid urbanization, expanding middle-class populations, and increasing mortgage penetration in countries such as China, Australia, and Japan. Latin America and the Middle East & Africa, while smaller in scale, are showing promising signs of growth as financial systems mature and housing finance markets develop.

In parallel to the Residential Mortgage-Backed Securities market, the Commercial Mortgage-Backed Securities (CMBS) sector is also experiencing notable growth. CMBS are securities backed by commercial real estate loans, and they play a crucial role in providing liquidity to the commercial real estate market. This market is driven by the demand for financing in sectors such as office spaces, retail centers, and industrial properties. As economies recover and commercial real estate markets stabilize, the CMBS market is expected to see increased issuance and investor interest. The diversification of commercial property types and the development of innovative financing structures are further enhancing the attractiveness of CMBS to

Commercial Mortgage-Backed Securities (CMBS) Market Outlook

According to our latest research, the global Commercial Mortgage-Backed Securities (CMBS) market size reached USD 1.15 trillion in 2024, reflecting a robust recovery and expansion post-pandemic. The market is projected to grow at a CAGR of 5.4% from 2025 to 2033, with the total value expected to hit USD 1.83 trillion by 2033. This growth is primarily driven by increased institutional investment, favorable interest rate environments, and the ongoing diversification of commercial real estate portfolios. As per our latest research, the CMBS market continues to attract both domestic and international investors due to its potential for stable returns and risk diversification.

One of the primary growth factors fueling the Commercial Mortgage-Backed Securities market is the resurgence of commercial real estate activity across major global economies. As economies stabilize and urbanization accelerates, demand for office spaces, retail complexes, and logistics hubs has rebounded, leading to a significant uptick in the origination of commercial mortgages. This, in turn, has bolstered the issuance of CMBS as lenders look to transfer risk and free up capital for further lending. Additionally, the increasing sophistication of risk assessment and credit enhancement mechanisms has made CMBS a more attractive investment vehicle, particularly for institutional investors seeking to balance yield and risk in their portfolios. The adoption of advanced analytics and AI-driven modeling further enhances the transparency and predictability of these securities, fostering greater investor confidence.

Another critical driver is the evolution of regulatory frameworks across key markets such as North America, Europe, and Asia Pacific. Regulatory bodies have implemented measures to ensure greater transparency, standardization, and risk mitigation in the CMBS market. For instance, the adoption of Basel III and other prudential regulations has compelled financial institutions to maintain higher capital buffers, prompting them to securitize more commercial loans. This regulatory impetus not only enhances the stability of the CMBS market but also encourages innovation in structuring and credit enhancement. Moreover, green financing trends and ESG (Environmental, Social, and Governance) considerations are increasingly influencing CMBS issuance, with investors showing growing interest in securities backed by sustainable and energy-efficient properties.

Technological advancements have also played a pivotal role in shaping the growth trajectory of the CMBS market. The integration of blockchain technology, digital platforms, and data analytics has streamlined the origination, servicing, and trading of CMBS instruments. These innovations reduce transaction costs, enhance due diligence, and improve the overall liquidity of the market. Furthermore, the emergence of fintech-driven marketplaces has democratized access to CMBS investments, enabling a broader spectrum of investors, including smaller institutions and high-net-worth individuals, to participate in the market. This technological democratization is expected to further accelerate market growth in the coming years.

From a regional perspective, North America remains the dominant force in the global CMBS market, accounting for over 58% of total issuance in 2024. The United States, in particular, benefits from a mature commercial real estate sector, well-developed financial markets, and a deep pool of institutional investors. Europe is witnessing steady growth, driven by increased cross-border investment activity and regulatory harmonization. Meanwhile, Asia Pacific is emerging as a key growth frontier, propelled by rapid urbanization, infrastructure development, and the expansion of real estate investment trusts (REITs). Latin America and the Middle East & Africa are also gaining traction, albeit from a smaller base, as local capital markets deepen and investor appetite for diversified fixed-income products grows.

In the realm of structured finance, Commercial Paper Conduits have emerged as a pivotal instrument for short-term funding needs. These conduits are typically established by financial institutions to facilitate the issuance of commercial paper, which is a type of unsecured, short

Residential Mortgage-Backed Securities (RMBS) Market Outlook

According to our latest research, the global Residential Mortgage-Backed Securities (RMBS) market size reached $2.39 trillion in 2024, demonstrating robust activity driven by strong investor appetite for structured products and ongoing demand for residential mortgage financing. The market is projected to expand at a CAGR of 4.7% from 2025 to 2033, with the total market value anticipated to reach $3.64 trillion by 2033. Growth in the RMBS market is being fueled by favorable interest rate environments, evolving regulatory frameworks, and increasing participation from both institutional and retail investors. As per our latest research, the market’s resilience and adaptability to changing macroeconomic conditions are expected to sustain its upward trajectory throughout the forecast period.

One of the primary growth drivers for the Residential Mortgage-Backed Securities (RMBS) market is the ongoing demand for housing finance across both developed and emerging economies. The continued expansion of the residential mortgage sector, supported by historically low interest rates and government-backed initiatives to improve homeownership, has provided a consistent supply of mortgage loans to be securitized. Additionally, the increasing sophistication of financial markets and the development of innovative RMBS structures have made these securities more attractive to a broader range of investors. The ability of RMBS to provide diversification, predictable cash flows, and relatively stable yields has further cemented their role in institutional portfolios, driving sustained issuance and trading volumes globally.

Technological advancements and digital transformation within the mortgage origination and servicing sectors are also contributing significantly to RMBS market growth. The adoption of advanced analytics, artificial intelligence, and blockchain technology has streamlined mortgage underwriting, enhanced risk assessment, and improved transparency throughout the securitization process. These innovations have not only reduced operational costs for issuers but have also increased investor confidence by providing real-time insights into underlying collateral performance. Furthermore, the integration of environmental, social, and governance (ESG) criteria into RMBS structures is attracting a new wave of socially responsible investors, further expanding the market’s investor base and supporting sustainable housing finance initiatives.

Evolving regulatory frameworks and supportive government policies are playing a pivotal role in shaping the RMBS market landscape. Regulatory bodies in key markets such as the United States, Europe, and Asia Pacific have implemented measures to enhance the transparency, standardization, and resilience of securitization structures. These reforms, including stricter disclosure requirements and improved credit risk retention rules, have strengthened investor protections and bolstered market stability. At the same time, government-sponsored enterprises (GSEs) and central banks have continued to support RMBS issuance through various liquidity and guarantee programs, ensuring a steady flow of capital into the housing finance ecosystem. This regulatory environment, coupled with macroeconomic stability, is expected to underpin the long-term growth of the RMBS market.

From a regional perspective, North America remains the dominant market for Residential Mortgage-Backed Securities, accounting for the largest share of global issuance and trading activity. The United States, in particular, benefits from a highly developed mortgage market, deep investor pools, and a well-established regulatory framework. Europe and Asia Pacific are also witnessing significant growth, driven by rising homeownership rates, expanding mortgage markets, and increasing investor participation. In contrast, Latin America and the Middle East & Africa are emerging as nascent markets, with potential for future growth as financial infrastructure and regulatory frameworks continue to evolve. Regional dynamics, including economic conditions, housing market trends, and regulatory developments, will continue to shape the global RMBS landscape over the forecast period.

Type Analysis

The Residential Mortgage-Backed Securities (RMBS) market is segmented into Agency RMBS and Non-Agency RMBS, each exhibiting distinct characteristics, risk profiles, and investor appeal. Agency RMBS are securiti

The size of the Mortgage-Backed Security market was valued at USD XXX million in 2023 and is projected to reach USD XXX million by 2032, with an expected CAGR of XX% during the forecast period.

Global Asset backed Securities market size 2025 was XX Million. Asset backed Securities Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Graph and download economic data for Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks (TMBACBW027SBOG) from 2009-07-01 to 2025-11-19 about mortgage-backed, agency, Treasury, securities, banks, depository institutions, and USA.

New York concentrated the highest value of commercial mortgage backed securities (CMBS) debt outstanding in the U.S. commercial real estate market in 2023. As of April that year, the value of CMBS debt outstanding amounted to almost *** billion U.S. dollars - higher than the combined value of the debt outstanding in the next **** markets in the ranking. With monetary policy tightening, the value of CMBS originations plummeted to the lowest figure seen in the last decade.

Commercial Mortgage-Backed Securities (CMBS) Market Outlook

As per our latest research, the global Commercial Mortgage-Backed Securities (CMBS) market size was valued at USD 1.23 trillion in 2024, demonstrating the robust scale of this critical segment within the structured finance landscape. The market is forecasted to reach USD 1.88 trillion by 2033, growing at a compound annual growth rate (CAGR) of 4.8% during the period from 2025 to 2033. This steady expansion is primarily driven by rising demand for diversified investment products, greater liquidity in commercial real estate financing, and evolving risk management strategies among institutional investors. The CMBS market continues to underpin commercial real estate growth by enabling capital flow and risk dispersion, making it a pivotal component of global financial markets.

One of the primary growth factors for the CMBS market is the increasing appetite for alternative investment vehicles among institutional investors. As traditional fixed-income yields remain compressed in many developed economies, CMBS instruments offer attractive risk-adjusted returns, particularly for pension funds, insurance companies, and asset managers seeking to diversify portfolios. Furthermore, the ability of CMBS to pool a broad array of commercial real estate loans—spanning office, retail, industrial, multifamily, and hospitality properties—enables investors to gain exposure to real estate assets without the complexities of direct property ownership. This structural advantage has spurred continued issuance activity and secondary market trading, reinforcing the market’s role as a cornerstone of commercial real estate finance.

Technological advancements and regulatory reforms have further bolstered the CMBS market’s growth trajectory. Innovations in data analytics, risk modeling, and loan servicing platforms have enhanced transparency, underwriting accuracy, and investor confidence. Meanwhile, regulatory frameworks—such as risk retention rules and enhanced disclosure requirements—have improved the overall quality of CMBS issuances and aligned issuer incentives with investor interests. These developments have helped mitigate some of the reputational risks associated with structured finance products, particularly in the aftermath of the global financial crisis, and have encouraged renewed participation from both issuers and investors.

Macroeconomic stability and favorable commercial real estate fundamentals have also played a significant role in supporting the expansion of the CMBS market. Sustained economic growth, low interest rates, and strong demand for office, industrial, and multifamily properties have led to an uptick in commercial mortgage originations, which in turn fuel CMBS issuance volumes. Additionally, the ongoing evolution of work, retail, and living patterns—accelerated by digital transformation and demographic shifts—has created new opportunities for property owners and investors to capitalize on emerging trends, such as flexible office spaces, last-mile logistics, and urban multifamily developments. These factors collectively underpin the resilience and adaptability of the CMBS market in a dynamic global environment.

From a regional perspective, North America remains the dominant force in the global CMBS market, accounting for the largest share of issuance and outstanding securities. However, significant growth opportunities are emerging in Europe and Asia Pacific, driven by increasing institutionalization of real estate markets, evolving regulatory frameworks, and rising investor demand for diversified credit products. While market maturity and regulatory harmonization continue to vary across regions, the globalization of commercial real estate investment and the search for yield are expected to drive further expansion and integration of CMBS markets worldwide.

Security Type Analysis

The security type segment of the Commercial Mortgage-Backed Securities market is primarily categorized into conduit, single-asset/single-borrower (SASB), and large loan CMBS. Conduit CMBS remains the most prevalent structure, characterized by the pooling of numerous small- to mid-sized commercial mortgage loans from various borrowers and property types. This structure offers significant diversification benefits, reducing idiosyncr

Agency MBS Market Outlook

According to our latest research, the global Agency MBS (Mortgage-Backed Securities) market size reached USD 9.3 trillion in 2024, reflecting the robust demand for securitized mortgage assets worldwide. The Agency MBS market is expected to expand at a CAGR of 4.2% from 2025 to 2033, with the market forecasted to reach USD 13.3 trillion by 2033. This growth is driven by the increasing appetite for fixed-income securities among institutional investors, ongoing government support for housing finance, and the evolution of risk management strategies in the global financial ecosystem.

One of the primary growth factors for the Agency MBS market is the consistent demand for safe, liquid, and yield-generating assets in a low-interest-rate environment. Agency MBS, backed by government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae, offer investors a unique blend of credit risk mitigation and attractive returns compared to other fixed-income instruments. The explicit or implicit government guarantee associated with these securities further enhances their appeal, particularly during periods of economic uncertainty. Additionally, the expansion of mortgage lending and refinancing activity, especially in developed markets, has fueled the supply of new Agency MBS, supporting market growth.

Another significant driver is the evolving regulatory landscape that encourages financial institutions to hold high-quality liquid assets (HQLA) for capital adequacy and risk management purposes. Agency MBS are typically classified as HQLA under Basel III regulations, making them a preferred choice for banks and other financial institutions seeking to optimize their balance sheets. Moreover, technological advancements in securitization, data analytics, and trading platforms have improved transparency, efficiency, and accessibility in the Agency MBS market, attracting a broader range of investors, including retail participants and non-traditional asset managers.

The diversification of investor profiles and the globalization of capital flows have also contributed to the expansion of the Agency MBS market. International investors, sovereign wealth funds, and central banks are increasingly allocating capital to Agency MBS as part of their portfolio diversification and risk-adjusted return strategies. This influx of global capital has enhanced market liquidity and depth, while also fostering innovation in product structures and risk transfer mechanisms. Furthermore, the growing recognition of Agency MBS as a tool for macroprudential policy and monetary operations by central banks underscores their strategic importance in the global financial system.

From a regional perspective, North America continues to dominate the Agency MBS market, accounting for the majority of issuance, trading volume, and investor participation. The United States, in particular, benefits from a mature mortgage finance system, strong regulatory oversight, and the presence of major GSEs. However, other regions such as Europe and Asia Pacific are witnessing steady growth, driven by financial market development, regulatory harmonization, and increasing cross-border investment flows. The regional dynamics are further influenced by macroeconomic factors, housing market trends, and government policies aimed at supporting homeownership and financial stability.

Product Type Analysis

The Agency MBS market is segmented by product type into Residential MBS, Commercial MBS, Collateralized Mortgage Obligations (CMOs), and Pass-Through Securities. Residential MBS remain the largest segment, underpinned by the substantial volume of residential mortgage loans originated and securitized by GSEs. These securities are widely regarded as a cornerstone of the fixed-income market, providing investors with exposure to the U.S. housing market and a steady stream of principal and interest payments. The standardized nature and government backing of residential MBS contribute to their high liquidity and low credit risk profile, making them a staple in institutional portfolios.

Commercial MBS, while smaller in scale compared to their residential counterparts, have gained prominence as institutional investors seek diversification across property types and geographic locations. These securities are backed by income-generating commercial real estate assets such as office buildings, shopping centers