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 Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks (TMBACBW027SBOG) from 2009-07-01 to 2025-09-24 about mortgage-backed, agency, Treasury, securities, banks, depository institutions, and USA.

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

The year 2021 saw the peak in issuance of residential mortgage backed securities (MBS), at 3.7 trillion U.S. dollars. Since then, MBS issuance has slowed, reaching 1.2 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.

The year 2021 saw the peak in issuance of residential mortgage backed securities (MBS), at 3.7 trillion U.S. dollars. Since then, MBS issuance has slowed, reaching 1.2 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.

Treasury plans to sell up to $10 billion of securities per month, subject to market conditions. This is in addition to principal paydowns (currently ranging between $2 and $4 billion per month). If the sales proceeded at the full $10 billion per month, the portfolio would be unwound in whole over approximately one year, depending on future rates of prepayments. If market conditions change and Treasury slows asset sales, it is possible that the unwind will take a longer period of time. Excel data shows the total principal and interest that the Treasury received from purchase to sell off of the MBS securities.

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

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

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

The industry is composed of non-depository institutions that conduct primary and secondary market lending. Operators in this industry include government agencies in addition to non-agency issuers of mortgage-related securities. Through 2025, rising per capita disposable income and low levels of unemployment helped fuel the increase in primary and secondary market sales of collateralized debt. Nonetheless, due to the sharp contraction in economic activity at the onset of the period, revenue gains were limited, but climbed in the latter part of the period as the economy has normalized. Interest rates climbed significantly to tackle significant inflationary pressures, which increased borrowing costs, hindering loan volumes but increasing interest income for each loan. However, the Fed cut interest rates in 2024 and is anticipated to cut rates in the latter part of the current year, reducing borrowing costs and providing a boost to loan volumes. Overall, these trends, along with volatility in the real estate market, have caused revenue to slump at a CAGR of 1.3% to $488.9 billion over the past five years, including an expected decline of 0.1% in 2025 alone. The high interest rate environment has hindered real estate loan demand but increased interest income, boosting profit to 15.6% of revenue in the current year. Higher access to credit and higher disposable income have fueled primary market lending over much of the period, increasing the variety and volume of loans to be securitized and sold in secondary markets. An additional boon for institutions has been an increase in interest rates, which raised interest income as the spread between short- and long-term interest rates increased. These macroeconomic factors, combined with changing risk appetite and regulation in the secondary markets, have resurrected collateralized debt trading since the middle of the period. Although institutions are poised to benefit from strong economic growth, inflationary pressures easing and the decline in the 30-year conventional mortgage rate, the rate of homeownership is still expected to fall but at a slower pace compared to the current period. Shaky demand from commercial banking and uncertainty surrounding inflationary pressures will influence institutions' decisions on whether or not to sell mortgage-backed securities and commercial loans to secondary markets. These trends are expected to cause revenue to decline at a CAGR of 1.0% to $465.4 billion over the five years to 2030.

The basic information on mortgage loan products is data that allows you to check the properties, dividend payment information, and credit rating status of each mortgage-backed security (MBS). The data consists of the following three operations. ① Search for basic product information: Function to check product name, issuance date, interest rate classification, coupon rate, maturity date, bond type, etc. based on the issuance number and product number. ② Search for dividend and interest payment information: Function to search for payment frequency, payment date, principal payment amount, interest payment amount, and total payment amount based on the issuance number and product number. ③ Search for credit rating information: Function to search for rating agencies, credit ratings, and rating evaluation dates based on the base date, issuance number, and product number.

The mortgage loan securities balance status information is data that allows you to check the balance status of mortgage-backed securities (MBS) based on various criteria. The data consists of the following four operations. ① Query the overall securities balance status: Provides information such as total MBS balance, remaining maturity, average maturity, and average interest rate based on the base date. ② Query the securities balance by issuance year: Function to check the MBS issuance volume and current balance information by year based on the issuance year. ③ Query the securities balance by maturity: Function to check the balance distribution status by remaining maturity section. ④ Query the securities balance by underlying asset type: Function to provide the MBS balance status by underlying asset type (housing mortgage, policy finance loan, etc.).

Asset-backed Securities Market Outlook 2032

The global asset-backed securities market size was USD 2,060.97 Million in 2023 and is likely to reach USD 4,431.66 Million by 2032, expanding at a CAGR of 7.5% during 2024–2032. The market is driven by the increasing financial awareness among the consumers worldwide.



Increasing demand for higher yield in a low-interest-rate environment is expected to drive the asset-backed securities (ABS) market, during the forecast period. ABS are financial securities backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities. They are a way to raise money for companies and a means of investment for investors, offering a diverse range of investment opportunities with varying risk and return profiles.

Growing awareness and understanding of ABS among investors are contributing to their popularity. These securities provide a way to invest in a wide range of income-generating assets, from credit card receivables and auto loans to student loans and other services. The ability to tailor ABS to meet specific investment objectives, such as risk tolerance and return requirements, makes them an attractive option for many investors.



Rising regulatory scrutiny and the need for transparent and robust structures are shaping the ABS market. The financial crisis of 2008 highlighted the risks associated with these securities, leading to significant changes in the market. Today, issuers are focusing on creating transparent, straightforward, and robust structures, which is expected to further boost investor confidence and drive the growth of the ABS market.

Impact of Artificial Intelligence (AI) in Asset-backed Securities Market

The use of artificial intelligence is likely to boost the asset-backed securities market. AI's "https://dataintelo.com/report/global-advanced-analytics-market" style="color:#0563c1; " target="_blank"><span lang="EN-US"

Total-Cashflows-From-Financing-Activities Time Series for PennyMac Mortgage Investment Trust. PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in residential mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. The Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements and subordinate mortgage-backed securities (MBS). The Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, base servicing and excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. The Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit quality loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.

Securitization Market Outlook

According to our latest research, the global securitization market size reached USD 3.7 trillion in 2024, with a robust compound annual growth rate (CAGR) of 7.2% observed over the past few years. The market is forecasted to expand significantly, reaching USD 6.7 trillion by 2033, driven by increasing demand for liquidity, risk diversification, and regulatory changes that promote structured finance. One of the primary growth factors fueling this market is the rising adoption of securitization as a tool for capital optimization and balance sheet management across financial institutions globally.

The growth of the securitization market is largely attributed to the evolving regulatory landscape, which has encouraged financial institutions to adopt more sophisticated risk management practices. Regulatory reforms such as Basel III and the implementation of stricter capital adequacy norms have pushed banks and non-banking financial institutions to explore securitization as a means to manage their capital requirements more efficiently. Moreover, the growing complexity and diversity of financial products have made securitization an attractive option for converting illiquid assets into tradeable securities, thereby enhancing market liquidity and providing institutions with additional funding sources. These factors collectively contribute to the sustained expansion of the global securitization market.

Another significant growth driver is the increasing participation of institutional investors seeking higher yields in a low-interest-rate environment. Securitized products such as mortgage-backed securities (MBS), asset-backed securities (ABS), and collateralized loan obligations (CLOs) offer attractive risk-return profiles, making them appealing to pension funds, insurance companies, and asset managers. The proliferation of digital platforms and fintech innovations has further streamlined the securitization process, reducing transaction costs and improving transparency. This digital transformation is enabling a broader range of asset types to be securitized, including non-traditional assets such as consumer loans, auto loans, and even intellectual property, thereby expanding the market's scope and depth.

Additionally, the securitization market is benefiting from the growing appetite for alternative investments among retail investors. As traditional investment avenues face increased volatility and lower returns, retail investors are turning to securitized products for portfolio diversification and enhanced yield. The emergence of new investment vehicles, such as exchange-traded funds (ETFs) and mutual funds that include securitized assets, is making these products more accessible to individual investors. This democratization of securitization is expected to further accelerate market growth, especially in emerging economies where financial markets are rapidly developing and investor awareness is on the rise.

From a regional perspective, North America continues to dominate the securitization market, accounting for the largest share due to its mature financial infrastructure, well-established legal frameworks, and high investor confidence. Europe follows closely, driven by regulatory harmonization and increasing cross-border transactions. The Asia Pacific region, meanwhile, is witnessing the fastest growth, supported by financial sector reforms, rising credit demand, and the expansion of capital markets. Latin America and the Middle East & Africa are also showing promising growth trajectories, albeit from smaller bases, as financial institutions in these regions increasingly recognize the benefits of securitization for funding and risk transfer.

Asset Type Analysis

The asset type segment of the securitization market is broadly categorized into mortgage-backed securities (MBS), asset-backed securities (ABS), collateralized debt obligations (CDOs), collateralized loan obligations (CLOs), and others. Mortgage-backed securit

Collateralized Mortgage Obligations Market Outlook

According to our latest research, the global Collateralized Mortgage Obligations (CMO) market size stood at USD 108.2 billion in 2024, reflecting the market’s robust presence and sophistication in the global financial landscape. The market is expected to register a CAGR of 4.7% from 2025 to 2033, reaching a projected value of USD 163.1 billion by 2033. This growth is driven by ongoing innovations in structured finance, increased investor appetite for diversified fixed-income products, and evolving regulatory frameworks that enhance market transparency and security. As per our latest research, the market dynamics are shaped by the interplay of macroeconomic stability, technological advancements in financial services, and the expanding role of mortgage-backed securities in global investment portfolios.

The growth trajectory of the Collateralized Mortgage Obligations market is underpinned by several key factors. First, the rising demand for securitized products among institutional investors is a primary catalyst. CMOs provide a structured approach to mortgage-backed securities, allowing investors to select tranches that align with their risk tolerance and investment goals. This flexibility in risk-return profiles, combined with the relatively predictable cash flows of mortgage-backed assets, makes CMOs particularly attractive in times of volatile interest rates and economic uncertainty. Additionally, the ongoing low-interest-rate environment in developed markets has pushed investors to seek alternative fixed-income products, further propelling the demand for CMOs.

Another significant growth driver is the evolution of financial technology and analytics in the mortgage and securitization sector. Advanced analytics, machine learning, and real-time data processing enable issuers and investors to better assess the credit quality of underlying mortgage pools and optimize tranche structures. These technological advancements have enhanced transparency, reduced operational risks, and increased the overall efficiency of the CMO issuance and trading process. Furthermore, regulatory reforms post-global financial crisis have improved the quality of underlying assets and risk disclosures, restoring investor confidence and fostering sustainable growth in the CMO market.

Expansion into emerging markets and the diversification of mortgage products are also contributing to the market’s positive outlook. As homeownership rates rise in Asia Pacific and Latin America, and as governments in these regions strengthen their housing finance systems, the issuance of mortgage-backed securities, including CMOs, is gaining traction. This trend is supported by the increasing participation of private institutions and foreign investors, who are attracted by the potential for higher yields and portfolio diversification. The globalization of capital markets and the harmonization of securitization standards are expected to further accelerate the adoption of CMOs beyond traditional strongholds like North America and Europe.

Regionally, North America continues to dominate the Collateralized Mortgage Obligations market, accounting for the largest share in 2024 due to its mature mortgage finance system and the active participation of government-sponsored enterprises. However, Europe and Asia Pacific are emerging as significant growth engines, driven by regulatory harmonization, financial innovation, and rising investor awareness. The Middle East & Africa and Latin America, while smaller in market share, are poised for above-average growth rates as local capital markets deepen and regulatory frameworks evolve to support securitization activities. These regional dynamics underscore the global nature of the CMO market and the diverse set of opportunities and challenges across geographies.

Type Analysis

The Collateralized Mortgage Obligations market is segmented by type into Sequential Pay, Planned Amortization Class (PAC), Targeted Amortization Class (TAC), Support/Companion Tranches, and Others. Sequential Pay CMOs remain a cornerstone of the market, favored for their simplicity and predictability. In this structure, principal repayments are directed to one tranche at a time, reducing extension and contraction risks for initial tranches. This feature is especially appealing to risk-averse investors seeking stable cash flows, such as pension funds and insurance companies. The sequential pay structure’s clarity

The mortgage loan market transaction status information is data that allows you to check the over-the-counter market transaction status of mortgage-backed securities (MBS). This data consists of a single operation, and provides major items such as transaction date, transaction type, transaction amount, transaction price, transaction interest rate, and remaining maturity month based on the base date and stock number. The detailed information of the operation is as follows. ① Over-the-counter transaction status inquiry: Over-the-counter transaction status inquiry function that searches for the over-the-counter transaction date, over-the-counter transaction amount, and number of over-the-counter transactions of securities through the liquidity plan code. This data can be used to understand the liquidity and transaction structure of the mortgage loan over-the-counter transaction market.

The Asset Securitization Market size was valued at USD 1,310 Billion in 2024 and is projected to reach USD 2.69 Billion by 2032 growing at a CAGR of 9.4% during the forecast period 2026-2032.● Enhanced Capital Efficiency: Capital resources are being optimized by financial institutions through securi-tization processes. Balance sheets are being strengthened as illiquid assets are converted into tradable securities, allowing for improved regulatory capital management.● Diversification of Funding Sources: Alternative funding avenues are being accessed by entities through securitization structures. Dependency on traditional lending sources is being reduced as multiple investor segments are tapped into, resulting in more stable and varied financing mechanisms.● Risk Transfer Capabilities: Credit and interest rate risks are being effectively distributed across the financial system through securitization techniques. Concentration vulnerabilities are being mitigated as exposures are spread among willing investors with appropriate risk appetites.

CN: Residential Mortgage Backed Security CPR Index data was reported at 0.134 NA in 24 Oct 2023. This stayed constant from the previous number of 0.134 NA for 23 Oct 2023. CN: Residential Mortgage Backed Security CPR Index data is updated daily, averaging 0.112 NA from Jan 2020 (Median) to 24 Oct 2023, with 949 observations. The data reached an all-time high of 0.215 NA in 12 Jun 2023 and a record low of 0.038 NA in 10 Apr 2020. CN: Residential Mortgage Backed Security CPR Index data remains active status in CEIC and is reported by National Interbank Funding Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MC: National Interbank Funding Centre (NIFC): RMBS CPR Index.

Loan administration, check cashing and other services endured a volatile landscape amid economic instability, elevated interest rates and sharp swings in core markets. While loan administration services remain a cornerstone to ensure consumers are compliant with repayment terms, considerable volatility amid inflationary spikes altered consumers’ purchasing behaviors. Rising interest rates provided greater revenue growth via higher mortgage and deposit fee revenue streams, although it also harmed individual customers and smaller businesses’ propensity to repay existing mortgages and auto loans. Nonetheless, continuous growth in the national housing market, as exemplified by the 65.2% spike in demand from real estate loans and collateralized debt, provided further boosts toward oversight of mortgages. Steady inclines in national housing prices created more favorable mortgage terms for lenders, bolstering loan service demand. Revenue grew at a CAGR of 1.6% to an estimated $26.8 billion over the past five years, including an anticipated 1.5% boost in 2025 alone. Inclining competition from digital payment services and online money transfer systems has undermined large-scale growth prospects. Check cashing servicers have been particularly harmed by digital proliferation, as prominent platforms such as PayPal, Zelle and Venmo continue to undermine client interest toward the industry. However, the technological pivot is also providing innovative opportunities, particularly among larger banks and loan service administrators looking to minimize dependence on manual labor and bolster profit. Moving forward, the industry is poised to continue growing at a steady pace, albeit mired by competitive threats. Anticipated growth in per capita disposable income and strong consumer confidence will sustain lending activity and demand for loan servicing, as customers will be more willing to take on long-term debts. The potential for interest rate cuts will further incentivize new loan procurement, although this could also harm the industry via reduced returns on mortgage interest and deposit fees. Technological expansion and the prevalent threat of digital payment platforms will remain the biggest barrier to expansive growth, although traditional brick-and-mortar services will remain popular across local markets where client trust will be integral. Revenue is expected to grow at a CAGR of 2.0% to an estimated $29.6 billion through the end of 2030.