Mexican RMBS Hits Resistance

Sep 1, 2009

Mexican RMBS sprang to life in August with BBVA Bancomer’s 5.9 billion pesos worth of borhis. However, further issuance is likely to be light.

“The panorama is very complicated for private sector issuers,” says Roberto Guzmán, a Fitch analyst based in Monterrey. Looking ahead, he sees limited ability for the country’s top mortgage lenders, such as Banorte, Scotia and HSBC, to access borhis.

As for sofoles and sofomes, the outlook is bleak, and Guzman expects little if any borhis issuance from shops like Su Casita, though the latter is heard planning a sale of hito notes. Sofol mortgage portfolios, which target lower income earners, have seen sizable jumps in default rates in the past 12 months.

The BBVA trade involved the sale of 2029 RMBS consisting...

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