Bankers See Decent ABS Pipeline

Bankers are upbeat about the prospects for LatAm ABS deal flow for the rest of the year. Susan Romo, MD for LatAm DCM at Credit Suisse notes opportunity in Mexican infrastructure. “That’s something that the government is putting a huge focus on,” says the banker. This includes housing and tollroads. “Colombia and Peru are great countries that are soon going to be coming out with a lot of things on a cross border basis,” says Romo. She adds that financial institutions in Central America also provide opportunity for US ABS transactions. Peru’s Interbank is planning a $150m issue MT100 via Credit Suisse, say LatAm structured finance specialists, who anticipate a tenor of around 5 years. This is seen setting off a wave of similar Peru deals, including BBVA Continental and BCP. Merrill Lynch’s head of LatAm ABS, Reginald de Villiers, meanwhile notes supply for Brazil and Mexico tax and consumer assets deals and is working on a Brazilian auto securitization. There are also real estate opportunities, he adds. Brigitte Posch, head of Deutsche’s LatAm securitization group, which recently closed a dual tranche Peru tollroad deal, sees a decent pipeline for the rest of 2008, focused on Brazil, Mexico, Peru and Colombia. In Brazil, Posch highlights potential in tax claims, auto loans and consigned credit. The bankers were speaking at last week’s 7th Annual LatinFinance/Euromoney Securitization in Latin America Summit in Miami.