Fungible MBS For Mexican Market Set To Lower Rates

Mexico will soon see its first issuance of fungible mortgage-backed securities (MBS), according to Sociedad Hipotecaria Federal (SHF), the mortgage-finance arm of the country’s Development Bank. Two Sofols (Sociedades Financiera de Objeto Limitado), or specialized lending institutions, are ready to make an offering of the instruments after almost a year of preparation. The innovation in the market is set to lower interest rates by up to 1.5 percentage points for consumers, according to the SHF, as liquidity increases and efficiencies are made.