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Net global securitisation issuance slumped by 79 per cent in 2008, according to the IFSL Securitisation report, and there is little indication of a recovery in the first quarter of 2009.
The global market for securitisation has fallen away since the autumn of 2007. The nationalisation of Fannie Mae and Freddie Mac has compounded earlier problems. Nearly two thirds of European securitisations downgraded in 2008. By contrast only 184 issues were upgraded in 2008.
During 2008 a growing volume of securitisation issuance, not included in the net figures, was retained within issuing banks. This reflected the use of securitisation by governments around the world as a mechanism to enhance liquidity and availability of credit. As a result, gross global securitisation issuance fell rather less than net issuance, by 37 per cent from $3,817bn in 2007 to $2,777bn in 2008.
The full report is attached below.