Asset Backed Insecurity

One of the most celebrated cross-border structured transactions to be placed in LatAm in the past five years – a $250 million 9.625% 2013 bond backed by luxury resort properties from Cap Cana – has become a red flag for the asset class. The nosedive to a low 20s secondary price highlights how fast a deal that appears solid in good times can unravel when the environment changes.