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 Business News | September 2007 
Mexico Mortgage Debt Sales to Resume, Credit Suisse Banker Says
 Valerie Rota - Bloomberg
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 |  | Some issuers are postponing sales, but by October I'm sure we'll see deals coming to market again.
- Ricardo Fernandez, Credit Suisse |  | |
Mexican residential mortgage-backed debt sales will probably resume in October as credit markets recover after a two-month slump, said Ricardo Fernandez, head of debt capital markets at Credit Suisse Mexico.
Issuers of bonds backed by residential mortgage loans didn't sell any securities in Mexico last month as traditional lenders hesitated to provide credit after the collapse of the U.S. subprime mortgage market. Mexican residential mortgage-backed bond sales totaled a record 5.7 billion pesos ($512 million) in July.
Mortgage lenders will likely pay higher borrowing costs to sell their securities next month as investors demand a higher premium after the fallout of the U.S. credit market, Fernandez said. Credit Suisse Mexico, a unit of Switzerland-based bank Credit Suisse Group, is the biggest underwriter of Mexican residential mortgage-backed debt excluding transactions from the government housing agency Infonavit.
"Some issuers are postponing sales, but by October I'm sure we'll see deals coming to market again," Fernandez said in an interview in Mexico City during a conference on real estate financing. "There will be a market for these securities, but we'll definitely see a re-pricing."
Lenders in Mexico began selling mortgage-backed bonds in 2003, creating a market that made home loans available to more people in Latin America's second-biggest economy. Mexican mortgage bond sales, which totaled $50 million in 2003, will likely exceed $2 billion this year and grow to $4 billion by 2010, Fernandez said.
To contact the reporter on this story: Valerie Rota in Mexico City at vrota1@bloomberg.net. |
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