Guillermo Babatz has a big job on his hands. After traveling the fast track in a number of senior positions at Mexico's Finance Ministry, known as Hacienda, the 35-year-old Harvard-educated economist was appointed two years ago as director-general of the newly created federal mortgage agency, Sociedad Hipotecaria Federal (SHF).
A Young Man with a Mission
Guillermo Babatz wants to revolutionize Mexico's mortgage industry and reshape the country's capital markets, too.
SHF's debut was accompanied by widespread speculation about its role. Babatz describes that mission simply: to create a secondary mortgage market.
And securitization should be the mechanism of choice to finance mortgages, meaning mortgage-backed securities (MBS) would become the backbone of Mexico's capital markets. "That's for a simple reason. The social security reform of 1997 implies that the great majority of financial saving in this country will flow through institutions like Afores [privately-managed pension funds] and...
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