For a time, it seemed that structured finance would never
recover from the taint it acquired during the financial crisis,
which had seen securitization roundly lambasted for its role in
the 2007-8 US subprime debacle.
STRUCTURED FINANCE: Going steady
Once shunned as the scourge of global financial markets, structured finance continues its comeback in Latin America – so long as the external environment permits
But rumors of its death have been greatly exaggerated. Far
from receding into obsolescence, structured finance is proving
an ever-more valuable tool for emerging market borrowers
– not least in Latin America, where issuance levels
remain steady for both local and cross-border transactions.
And though the region’s structured finance
market is still in its infancy – and remains small
compared to other emerging and developed regions –
Latin America’s relative resilience to the effects
of the global credit crisis has meant that investors are
increasingly eyeing up the region’s asset
That doesn’t mean it’s plain
sailing. Jorge Unda, chief investment officer at BBVA Asset
Management, says that the novelty of the structured finance
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