Mexico Special Report: RMBS Boom Interrupted
RMBS issuance in 2008 is lagging behind last year and issuers have to pay up to get deals done. However, a jumbo placement signals faint light at the end of the tunnel.
by Greg Brosnan
Just as prospects for Mexican residential mortgage-backed
security issuance looked bleak this year amid dismal global
conditions, BBVA Bancomer blew a dormant market back open with
a 5 billion peso bombshell the biggest ever RMBS issue
in the countrys history.
Mexicos biggest bank launched the record 4.829 billion
peso UDI-denominated 2033 issue August 6 in two equal tranches.
The first tranche priced at 4.61 %, while a second tranche that
amortizes later, priced at 5.53 %. Analysts said
Bancomers strength in the market and the strong payment
record of the collateral backing the issue helped the bond
sell, but relatively low demand gives a sense of challenges the
asset class faces this year.
More paper is in the pipeline: In early August HSBC was also
planning a 2 billion peso RMBS. But higher rates on long-term
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