Mexico Special Report: RMBS Boom Interrupted

Mexico Special Report: RMBS Boom Interrupted

Structured Finance

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 country’s history.Mexico’s 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 Bancomer’s 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

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