June 28, 2013
Also in Colombia, the finance ministry’s changes in the tax framework in late 2012 included scrapping exemptions for banks to hold rent-to-buy lending on their balance sheets. That is likely to increase sales of RMBS, as banks free up balance sheet space for further lending. Titularizadora Colombiana will issue as much as $1 billion equivalent of RMBS this year – up from around $500 million in 2012 – partly as a result of the tax changes, says Diego Rojas, the firm’s planning director. Growing lending by public entities will also contribute to higher rates of securitization in Colombia, Rojas says.
And in Brazil, agricultural receivable securitizations are expected to boom, following stron
CAF’s plans to establish an infrastructure CDO in Colombia come as other issuers across Latin America are increasing their use of structured finance.