GMAC Mexico Plans ABS

Mexico’s GMAC Financiera is planning to launch an MBS issue in the next two weeks, CEO Mauricio Jannet tells LatinFinance. The details are still being finalized, but the target is MXP620m at a tenor of about 7-8 years. The official says GMAC will follow the Danish model first used in the Mexican market by Hipotecaria Total in its Bonhito program, which allows for the issuance of bonds as the mortgage credits are accumulated, rather than waiting to build a large pool of collateral before issuing. This is the only safe way to do asset-backed issuance in Mexico at the moment to the institutional investor community, Jannet says. “You have to do your homework,” he explains, noting issuers must today provide more in the line of data points and evidence for how the model has worked historically than they have in the past.