1970 – U.S. Department of Housing and Urban Development creates a mortgage backed security (mortgage pass-through) sold through GNMA
1983 – Salomon Brothers – First CMO created for Freddie Mac
1985 – Securitization of automobile loans (Originated by Marine Midland Bank and securitized in 1985 by the Certificate for Automobile Receivables Trust, CARS, 1985-1)
1986 – First ABS. Bank credit card sale – private placement of $50 billion of outstanding bank card loans
1986 – Salomon Brothers – First mortgage derivative
1987 – Drexel Burnham – First mezzanine CDO (for Imperial Savings Association)
1990 – Credit Suisse First Boston – First CLO
1995 – U.S. Congress creates the Student Loan Marketing Association (Sallie Mae) as a government sponsored enterprise to purchase student loans in the secondary market and to securitize pools of student loans
1997 – First public securitization of Community Reinvestment Act (CRA) loans
1997 – First modern credit default swaps invented by JPMorgan Chase (first CDS involved JPMorgan selling the credit risk of Exxon to the European Bank of Reconstruction and Development)
1997 – JP Morgan – First synthetic CDO (Bistro deal)
1999 – Gramm-Leach-Bliley Act – Also known as the Financial Services Modernization Act of 1999 repeals part of the Glass-Steagall Act of 1933. Investment banks now allowed to combine with commercial banks and/or insurance companies
2000 – Commodity Futures Modernization Act of 2000 (Credit default swaps largely are exempt from regulation by the SEC)
2000 – Credit Suisse – First mortgage backed CDO
2001 – David X. Li introduces the Gaussian copula models, which allow for the rapid pricing of CDOs
2000-2009 Global Issuance of CDOs