Metrofinanciera Reopens Mexican RMBS

Mexican mortgage shop Metrofinanciera has cracked open domestic RMBS with the first 2008 transaction of significant size. It priced Friday an UDI-denominated MXP1.04bn-equivalent in 2033 bonds backed by mortgages from its portfolio at 5.3%, or 177bp over 10-year Udibonos. The 144A-registered notes were available to US investors through ADRs, but went mostly to the local market, according to officials on the deal. The market may not be what it was a year ago, says one, but the shop needs to issue, and was able to place the notes at the beginning of what many in the Mexican market expect to be a weaker 2008 overall for structured finance. The deal has a AAA local rating. Ixe and Deutsche Bank managed the sale. Mexico has enjoyed stellar growth in structured finance, with issuance as a whole jumping to $7.1 billion equivalent in 2007, up 15% from the previous year, according to S&P. RMBS makes up more than a third, in a mix of private sector Borhis and Cedevis issued by quasi-state housing fund Infonavit. Issuers expect a rise in 2008 RMBS but investor appetite looks very limited unless major price concessions are made.