A Young Man with a Mission

Sep 1, 2004

Guillermo Babatz wants to revolutionize Mexico's mortgage industry and reshape the country's capital markets, too.

Guillermo Babatz
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). 

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...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events

Poll

Which area will be most profitable for investment banks in LatAm in 2016?

Vote    




Popular Searches