It’s A Wrap

Mexican housing finance company GMAC Financiera is to issue the first mortgage-backed securities (RMBS or Borhis) to carry a full wrap. The issue, due to be launched today, Thursday, will be denominated in inflation-indexed investment units (UDIs), divided into two series, totaling 194 UDIs ($68 million). The securities are backed by financial guarantees issued by Financial Guaranty Insurance Company (Figic) of the US, showing the growing interest in Mexico’s domestic MBS market by international players, according to ratings agency Standard & Poor’s which this week rated Series A of the issue AAA. The securities mature 2035 and will pay a fixed rate of 4.40% (A) and 6.60% (B). This is GMAC’s seventh securitization issue.