</p

 Commercial banks and thrifts also had the largestrnincrease in their holdings of multifamily debt, upping their portfolios byrn$28.7 billion or 12.2 percent.  REITSrnrecorded the largest increase in percentage terms, 41.1 percent.  Commercial Mortgage-Backed Securities (CMBS),rnCollateralized Debt Obligations (CDO) and Asset-Backed Securities (ABS) as arngroup saw a decrease in their holdings of $5.6 billion or 6.9 percent whilernfinance companies had the largest percentage drop of 29.9 percent. </p

</p

The level of commercial/multifamily mortgage debtrnoutstanding increased by $41.2 billion, or 1.7 percent, in the fourth quarterrnof 2013, as all four major investor groups increased their holdings.   Multifamilyrnmortgage debt rose to $895 billion, an increase of $11.5 billion, or 1.3rnpercent, from the third quarter and $36.6 billion, or 4.3 percent, from thernfourth quarter of 2012.</p

Commercial banks and thrifts led in the growth ofrnmulti-family holdings as well.  In dollarrnterms their holdings increased by 10.4 billion or 4.1 percent.  Second was CMBS, CDO and other ABS issues, uprnby $1.2 billion, or 1.6 percent.  Life insurance companies increased byrn$434 million, or 0.8 percent.  State and local government retirement fundsrnsaw the biggest decrease in their holdings of multifamily mortgage debt, byrn$451 million, or 17.8 percent.</p

</p<p<br /Commercial banks also recorded the largest increase in holdings of multifamilyrnmortgages in percentage terms, at 4.1 percent.  State and local governmentrnretirement funds saw the biggest decrease, at 17.8 percent.</p

The largest piece of multi-family debt is held byrnagency and GSE portfolios and MBS with $391 billion, or 44 percent of therntotal.  Banks and thrifts hold $263rnbillion, or 29 percent.  CMBS, CDO andrnother ABS issues and state and local government each hold $75 billion, or 8rnpercent of the total; life insurance companies hold $53 billion, 6 percent ofrnthe total; and the non-farm non-corporate business holds $15 billion, or 2rnpercent. </p

In the fourth quarter of 2013, bank and thriftsrnsaw the largest increase in dollar terms in their holdings ofrncommercial/multifamily mortgage debt – an increase of $28 billion, or 3.2rnpercent.  CMBS, CDO and other ABS issues increased their holdings ofrncommercial/multifamily mortgages by $11 billion, or 2.1 percent.  Financerncompanies saw the largest decrease of $2 billion or 3.5 percent.  </p

</p<p<br /In percentage terms, other insurance (non-life) companies recorded the largestrnincrease in holdings of commercial/multifamily mortgages, at 4.4 percent. rnState and local government retirement funds saw the biggest decrease, at 17.8rnpercent.<br /<br /"During the fourth quarter, commercial and multifamily mortgage debtrnoutstanding reached a new high, erasing the declines caused by the recession,”rnsaid Jamie Woodwell, MBA’s Vice President of Commercial Real EstaternResearch.  “Over the course of 2013, banks increased their holdings ofrncommercial and multifamily mortgages by seven percent, and their balance ofrnjust multifamily mortgages by more than 12 percent.  Commercialrnmortgage-backed securities’ holdings increased for the first time since 2007,rnand life insurance companies, the GSEs and FHA each increased their holdingsrn(or guarantees) by more than three percent.  Simply put, it was a strongrnyear.”</p

MBA’s analysis summarizes the holdings of loansrnor, if the loans are securitized, the form of the security. For example, manyrnlife insurance companies invest both in whole loans for which they hold thernmortgage note (and which appear in this data under Life Insurance Companies)rnand in CMBS, CDOs, and ABS for which the security issuers and trustees hold thernnote and which appear here under CMBS, CDO and other ABS issues.

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