Subprime Aversion May Leak into LatAm

Subprime Aversion May Leak into LatAm

Structured Finance

Demand for EM and LatAm MBS may dampen in the medium to long term if the selloff in US subprime mortgages continues, says Christian Stracke, an analyst at CreditSights, answering questions on the subprime issue in an FT forum Monday. In the near term, however, LatAm real estate markets and the US have behaved independently of one another. The real issue is on the reliability of ratings on the lower credits, a problem Stracke believes also exists in LatAm. "The problem is especially acute when yo

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