September 1, 2008
by Greg Brosnan Just as prospects for Mexican residential mortgage-backed security issuance looked bleak this year amid dismal global conditions, BBVA Bancomer blew a dormant market back open with a 5 billion peso bombshell the biggest ever RMBS issue in the countrys history.Mexicos biggest bank launched the record 4.829 billion peso UDI-denominated 2033 issue August 6 in two equal tranches. The first tranche priced at 4.61 %, while a second tranche that amortizes later, priced at 5.53 %. Analysts said Bancomers strength in the market and the strong payment record of the collateral backing the issue helped the bond sell, but relatively low demand gives a sense o
RMBS issuance in 2008 is lagging behind last year and issuers have to pay up to get deals done. However, a jumbo placement signals faint light at the end of the tunnel.