Mexican Housing Starts
Mar 5, 2009
Proving that Mexico remains a relative hotbed for LatAm securitization, a pair of issuers from the housing sector have surfaced. The two deals carry different degrees of certainty.
Mexico’s GMAC Financiera is planning to launch an MBS issue that could price in the first week of March, CEO Mauricio Jannet tells LatinFinance. Details are still being finalized, but the target is 620 million pesos at duration of about seven to eight years. GMAC will look to follow the Danish model first used in the Mexican market by Hipotecaria Total (HiTo) in its Bonhito program. This allows issuance of bonds as mortgage credits are collected, rather than having to accumulate a large pool of collateral first. The model involves offering bonds on a rolling basis as the collateral mortgages are brought in. HiTo began issuing small packages of notes in August of 2008, just before the financial crisis really took off.Jannet says this is the only safe way to do asset-backed issuance for the institutional investor community in Mexico at the moment. With a still wary buyside and the...
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