Int'l : +1-503-894-6022 | Toll Free : +1-800-792-5285 | help@alliedmarketresearch.com
A07399 | Pages: NA | Charts: NA | Tables: NA |
Globally, the market for mortgage funds has experienced considerable growth, and is expected to expand as mortgage rates rise year-on-year and largely favors mortgage backed securities in the market. Mortgage fund is a portfolio trust administered by a fund manager that invests in mortgages on real estate. Fund raises capital by selling trust units, which provides mortgage loans to a number of borrowers purchasing and building properties. Furthermore, mortgage funds usually hold bulk investments in mortgage-backed securities with a small proportion of cash and other debt.
The global mortgage funds market is segmented on the basis of type, end user, and region. Based on type, the market is bifurcated into pooled mortgage fund and contributory mortgage fund. On the basis of end user, the market is divided into investors, financial institutions, insurance companies, banks, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key players operating in the global mortgage funds industry include BlackRock Inc., The Vanguard Group Inc., J.P. Morgan & Co., Citigroup Inc., PIMCO, Goldman Sachs Asset Management LP, Wellington Management Company, Charles Schwab Corporation, Fidelity Investments Inc., and Franklin Resources Inc. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global mortgage funds market.
With increase in risk among equity and other financial instruments, investors are looking for safer assets and expecting a monthly payment, which is one of the major factors that drive the market growth. However, increase in competition from banks & large wealth management firms, evolution of government regulations, and unstable interest rates affect lending rates of mortgage. These factors limit growth of the mortgage funds market.
On the contrary, rise in number of banks and increase in investments in asset & mortgage backed securities are some of factors expected to provide key opportunities to the market.
New launches in the mortgage funds market boosts the demand for advance and customized services and has become a major driver for the market growth. For instance, in May 2020, in Canada, FTSE Russell, a provider of equity indexes launched a benchmark index for the domestic mortgage-backed securities market, offering a modern route to reach fixed income investing. In addition, FTSE Canada NHA MBS 975 Index, which accounts for National Housing Act mortgage-backed securities, provides a transparent indicator for nearly $500 billion market.
In China, government is encouraging investments in mortgage related securities. The country has aimed at real estate investment trusts to leverage capital accumulation. Moreover, Real Estate Investment Trust (REITs), which is a company that owns income-producing real estate, enhances growth of funds for reinvestment by raising financial capital and reducing company debt in the market. Hence, China is expected to launch mutual funds to public REITs, which can be freely traded in the country's markets as stocks. The move was set to pool more investments to accumulate capital for building properties and other government reforms such as roads, hospitals, sewage facilities, and housing.
Key Benefits of the Report
Questions Answered in the Mortgage Funds Market Research Report
Key Market Segments
Key Market Players