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 ...