A new phase of securitization in Latin American is beginning, slowly. While cross-border future flow transactions are still the bulk of the region?s asset-backed financing, more and more jurisdictions are laying the legal groundwork to allow a greater level of mortgage-backed financing. Brazil and, especially Mexico, are building up primary and secondary mortgage markets. Colombia, and to a lesser extent Chile, are also developing mortgage markets though neither country has yet logged significant transactions. Argentina was Latin America?s pioneer and leader in this area of finance but the economic crisis has stunted securitization activity.
Category: Web Articles
Posted inWeb Articles
Not Much of a Safe Haven
The Mexican Stock Exchange has performed well this year, beating the US markets. However, its future is in the balance as it struggles to maintain trading volumes and liquidity.
Posted inWeb Articles
Turning on the Credit Supply
Interest rates and inflation are falling. That should have a positive impact on bank lending and the capital markets.
Posted inWeb Articles
Finessing Brazil’s fiscal balance
The push for prudent fiscal management is on, but will Brazil’s voracious spending overwhelm it?
Posted inWeb Articles
Oil Rich, Cash Poor
Mexico’s state-owned oil company generates billions of dollars in revenues, but cannot afford to invest in its own future. The government is trying to convince Congress to allow private-sector investment in the oil, gas and power industries.
Posted inWeb Articles
Value, profits and access
With strong capitalization and strong returns, Roberto Setúbal is building Banco Itaú’s clout in the capital markets
Posted inWeb Articles
An Essential League
League tables have long been prized by investment bankers for pitching business to governments, public and private companies. Occasionally they are scorned as tools for marketing to the uninformed. But […]
Posted inWeb Articles
Go Anywhere Commerce
Latin America banks are learning to view the Internet more as a means of generating business, rather than as a purely transactional, money-making tool.
Posted inWeb Articles
Orinoco No Flow?
Venezuela?s Orinoco oil belt, the largest known hydrocarbon deposit in the world, is a gold mine both to the Venezuelan government and foreign investors. Sponsors Texaco, Phillips Petroleum and Venezuela?s national petroleum company Petroleos de Venezuela (PDVSA) signed a $1.1 billion financing as part of the $3.5 billion Hamaca oilfield project in June. Financial backing from the Export-Import Bank of the US helped garner support from commercial banks. But President Chavez wants to pass a new hydrocarbons law (see Promulgations page 8) that threatens to raise future financing costs for oil exploration projects and deter investment in Venezuela?s energy industry.
Posted inWeb Articles
A North American Mentality
Free trade with the US has transformed Mexico from a closed an inward-looking economy into one of the most open in the world. Its leading companies are the most adventurous and successful in Latin America.