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US Investors Eye Mexico Mortgage Debt - Infonavit
 Patrick Rucker & Jean Luis Arce - Reuters
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October 30, 2010
Mexico City - Infonavit, Mexico's largest home lender, is fielding interest in mortgage bonds from U.S. investors, an official said on Friday, as yield-hungry foreigners continue to pour money into the country.
Mortgage bond issuance by government-run Infonavit grew more than 30 percent a year between 2004 and 2008. The enterprise has issued 13.68 billion pesos ($1.11 billion) in bonds this year.
HSBC and Banamex in Mexico are introducing Infonavit to prospective investors in the United States, said Jersy Skoryna, who manages the company's mortgage bond program.
"There is interest, but we have to evaluate how to do" the sales, said Skoryna.
"These investors want to buy something because they are specialized in that (market)," he said. "We need to let them know what we are doing and get a sense of what they would be willing to buy."
Infonavit's issuance is tiny compared with the $118.4 billion in fresh mortgage-backed securities issued in the United States in the first three months of the year. But Skoryna said he welcomed the interest from north of the border.
Earlier this week, Infonavit sold 3.04 billion pesos ($246 million) worth of mortgage bonds, known as Cedevis, at their lowest-ever yield.
The inflation-protected 28-year bonds priced with a coupon of 4.15 percent, making them attractive relative to similar tenors of Mexican government debt.
The government's 30-year bond yielded 7.09 percent in Friday afternoon trading.
Mexico's central bank expects inflation to be no lower than 3.75 percent in early 2011.
Foreign investors have poured roughly $13 billion into Mexico's long-term government bonds this year as yield-hungry investors have turned to developing countries for bigger returns.
Outside investors interested in Mexican mortgage bonds would have to make costly hedges to protect against currency risk and there are other costs, but Skoryna said he expects to hear more from foreign investors.
"It's really just a matter of finding out what their needs are," he said.
(Reporting by Patrick Rucker and Jean Luis Arce; Editing by Dan Grebler)
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