Passing on Plain Vanilla

Passing on Plain Vanilla

Asset-backed bonds face their toughest test yet as Latin America simultaneously copes with a global recession, crisis in Argentina and trouble brewing in Brazil. There is almost no demand in the international markets for plain vanilla bonds that sustained companies and banks in the good years. Some banks are hiring structured finance bankers for an expected rise in future flow issuance in Latin America next year. According to the Dealogic Bondware, a database, Latin American issuers have sold just two plain vanilla bonds since July. Ratings agencies, Fitch, Standard&Poor's and Moody's have rated around seven securitizations of future flow receivables among them since July. It is clear

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