Asset-backed securities issuance in 1995 shattered the prior year's record.
The public asset-backed market recorded total volume of $107.792 billion last year, a 42% increase from 1994's $75.925 billion, according to a report from Capital Markets Assurance Corp., New York.
December's issuance was $9 billion, an average month for 1995, but still 80% above the level of December 1994.
Existing investors increased their appetite for ABS while new investors entered the market, seeking the yields, durations and ratings they previously had sought in the Treasury, mortgage and corporate markets, the report said.
Every sector achieved new highs in dollar volume. For instance, home equity loans increased 59%; credit cards, 47%; and autos, 41%.
In other findings:
Spreads to U.S. Treasuries narrowed significantly in 1995, with few exceptions.
1995 saw several innovations, including Citibank's issuance of the first callable credit-card-backed security and MBNA Corp.'s incorporation of swaps into a master trust.
Returns, while in the double digits, lagged those of longer-duration Treasuries, corporates and mortgages.
Merrill Lynch's ABS Master Index (fixed) rose 12.258%, compared with 13.716% for short-term corporates, 16.098% for intermediate-term Treasuries and 17.041% for the Mortgage Master Index.