LatAm Securitization Market Expands 25%

Structured finance transactions in LatAm surged 25% last year, with ABS and MBS deals totaling 19.1bn in 2007, according to Moody’s. In 2006 the same asset classes corresponded to $15.3bn. Mexico, Brazil, and Argentina continued leading domestic issuance. Mexico accounted for a share of 36.5%, Brazil a 34.9% portion, and Argentina a 17.4% part of the total. Consumer loans were the most commonly securitized asset in 2007, making up 36.8% of the total. “Consumer-related transactions will continue to represent a large portion of total securitizations in Latin America, mainly driven by the popularity of these asset types in Brazil and Argentina,” says Martin Fernandez Romero, an analyst at Moody’s.