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KIDDER PEABODY REMAINS TOP UNDERWRITER OF MORTGAGE-RELATED SECURITIES IN FIRST QUARTER, BUT SALOMON MOVES UP

KIDDER PEABODY REMAINS TOP UNDERWRITER OF MORTGAGE-RELATED SECURITIES
 IN FIRST QUARTER, BUT SALOMON MOVES UP
 WASHINGTON, April 13 /PRNewswire/ -- Kidder Peabody continued its reign as the top Wall Street firm underwriting mortgage-related securities during the first quarter of 1992 with a huge 41 deals and $16.7 billion in business, Inside Mortgage Capital Markets announced today.
 But moving into second place was Salomon Brothers, a firm that placed only seventh in 1991. Although Salomon Brothers lead managed only 16 mortgage-related securities deals during the first quarter, the firm nevertheless did $12.3 billion in business.
 Inside Mortgage Capital Markets, an independent weekly newsletter based in Bethesda, Md., provides a quarterly ranking of mortgage- related security issuers as well as underwriters as part of its regular in-depth coverage of the mortgage security market.
 (Note: For purposes of this ranking, full underwriting credit was given to the lead manager of the deal. Mortgage-related securities include agency-backed CMOs and REMICs as well as private- label MBSs.)
 In third place among overall mortgage-related security underwriters during the first quarter of 1992 was Bear Stearns with $9.99 billion in business and 16 deals. Rounding out the top five underwriters were Lehman Brothers with $9.4 billion and 25 deals, and Merrill Lynch with $7.9 billion and 21 deals.
 Total mortgage-related security production soared to a record high $189 billion during the first quarter of 1992, and about half of that volume involved transactions that were underwritten by investment banking firms. Here is a breakdown of that underwriting by market segment.
 Agency-Backed CMO/REMIC Market
 Although Fannie Mae and Freddie Mac technically dominated the agency-backed CMO/REMIC market during the first quarter, it was mostly Wall Street firms that developed, structured and marketed the record $75.1 billion in CMOs/REMICs produced during the period.
 As has been the case for more than a year now, Kidder Peabody was the top underwriter of agency-backed CMOs/REMICs during the first quarter with 30 deals totalling $13.3 billion in business. Kidder's volume amounted to 18 percent of the total CMO/REMIC market, up slightly from the 17 percent market share the firm held for all of 1991.
 Although no other firm came close to matching Kidder Peabody in number of CMO/REMIC deals, Salomon Brothers was not very far behind in actual dollar volume. With 12 transactions totalling $10.7 billion, Salomon Brothers moved from sixth place among CMO/REMIC underwriters in 1991 to second place in the first quarter of 1992.
 Interestingly, Salomon Brothers' average CMO/REMIC deal was $892 million, while Kidder Peabody's average deal was less than half that amount -- $442 million.
 In third place among agency CMO/REMIC underwriters during the first quarter of 1992 was Bear Stearns with 14 deals and $9.2 billion in business. Lehman Brothers was the fourth largest underwriter of CMOs/REMICs in the first quarter with $6.1 billion in volume and 14 deals. This represented a drop for Lehman Brothers, which was the second largest CMO/REMIC underwriter for all of 1991.
 In fifth place among CMO/REMIC underwriters in the first quarter was Goldman Sachs with $5.8 billion and 12 deals. This was a move up from the eighth place showing Goldman made in 1991.
 The Private-Label MBS Market
 While most of the underwriting action in mortgage-related securities took place in the agency-backed CMO/REMIC market, the private-label MBS sector also accounted for a sizable amount of business in the first quarter of 1992. In fact, a record $20.7 billion in private-label MBSs were produced in the first three months of the year.
 (Note: Private-label MBSs are defined as rated pass-through securities that carry no governmental guarantees and are backed by whole loan or private MBS collateral.)
 Merrill Lynch was the top underwriter of private-label MBSs in the first quarter with $3.6 billion in business and 12 deals. This was more than half of the business Merrill Lynch did in all of 1991 when the firm was the third largest underwriter of private MBSs.
 Following close behind in second place among private-label MBS underwriters in the first quarter was Kidder Peabody with $3.5 billion in volume and 11 deals. Last year, Kidder was the fourth largest underwriter of private MBSs.
 In third place during the first quarter was Lehman Brothers -- 1991's top private-label MBS underwriter -- with $3.3 billion in business and 11 deals. Rounding out the top five underwriters of private-label MBSs were fourth place First Boston with $2.2 billion in volume and nine deals, and fifth place Goldman Sachs with $1.7 billion and seven deals.
 A complete list of all CMO/REMIC and private-label MBS underwriters can be obtained from Inside Mortgage Capital Markets.
 -0- 4/13/92
 /CONTACT: Guy Cecala, editor and publisher, Inside Mortgage Capital Markets, 301-951-1240/ CO: Inside Mortgage Capital Markets ST: District of Columbia IN: FIN SU:


SB-TW -- DC010 -- 7672 04/13/92 10:51 EDT
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Date:Apr 13, 1992
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