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 marketplace...
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