At the end of 1999, Banc of America Securities launched the third index in its commerical mortgage-backed securities (CMBS) index family. The Banc of America Securities LLC Agency Multifamily Securities Index (the MF Index) tracks the total rate of return of single-class agency multifamily securities, all of which have an implied AAA-rating and are backed by government-sponsored enterprises including Federal National Mortgage Association, Government National Mortgage Association, and Federal Housing Administration. Banc of America Securities, a subsidiary of Bank of America, first launched a general CMBS index in November 1998.
The issuance of both agency multifamily securities and CMBS has grown rapidly in the last decade. Agency multifamily securities issuance, which was $6 billion in 1990, totaled $17.6 billion in 1998, according to Michael Youngblood, managing director of real estate capital markets at Banc of America Securities. Total CMBS issuance grew by a far larger amount, to a remarkable $74.9 billion from $4.9 billion over that same time period, he added.