The recovery of the mortgage-backed securities market is a highlight of the Australian Financial Markets Association's annual market report, which shows that RMBS secondary market turnover is growing along with issuance.According to AFMA's 2014 Australian Financial Markets Report, released yesterday, trading in non-government debt securities was down 0.7 per cent in the year to June.The fall was largely due to a 38.7 per cent fall in turnover of Commonwealth guaranteed bank securities. Several banks redeemed these high-cost securities over the past year.Turnover of bank securities grew by 2.5 per cent, turnover of corporate securities was up 8.1 per cent and turnover of mortgage-backed securities, which were on the critically ill list a few years ago, was up 6.1 per cent.In the non-government bond market, bank securities accounted for 40 per cent of turnover (up from 38 per cent in 2013), mortgage-backed securities accounted for 28 per cent of turnover (up from 26 per cent), corporate securities accounted for 15 per cent (from 14 per cent) and foreign non-government securities 15 per cent (down from 19 per cent).AFMA said corporate issuance during the December half was robust with a number of new credits coming to the market.AFMA said: "Also beneficial was the ability to access tenors [terms] out past the traditional five years, which influenced companies to issue in Australian dollars as opposed to US dollars, euro or yen."Total financial market turnover fell 6.6 per cent in the year to June. In the equity market, share trading turnover was up 3.2 per cent but options trading turnover was down 19.2 per cent and futures trading was down 6.6 per cent.Trading in government securities was up 6.8 per cent. Swaps trading was down 0.3 per cent and forward rate agreement activity was down 34.4 per cent. Foreign exchange turnover was up 1.2 per cent.The report gives an insight into the impact of the financial crisis on the bond market. In 2007 non-government bond outstandings were A$346 billion, compared with state and Commonwealth bond outstandings of $125 billion.The financial crisis changed the shape of the bond markets, with the Australian Government Budget returning to deficit. In June 2014, state and Commonwealth bond outstandings were $540 billion, compared with non-government bond outstandings of $474 billion.