Borhis Supply Seen Rising

The supply of borhis, Mexican MBS issued by Sofoles and banks, is set to grow sharply, Guillermo Babatz, CEO of SHF told Silas. “We believe that by 2009, securitization will be the main source of funds for the private lenders in Mexico,” said Babatz. Last year saw roughly $1bn and Babatz expects close to $2.5bn this year, around 30% of the bank and Sofol financing needs. One of the key issues holding the market back is slow turnaround time between loan origination and going to the ABS market. Babatz also highlighted the need for a more liquid secondary market.