The fact that deals are backed by fixed-rate mortgages helps protect them from climbing interest rates in Russia. Very low LTVs also help.
New asset classes could include equipment leases and consumer loans; such deals could be sponsored by both existing and first-time issuers such as commercial banks, local branches of international banks, financial leasing companies and asset management companies.
As more and more Chinese gain the financial access to buy a car with a loan, lenders will look increasingly to securitization to keep origination going.
The deal, Bavaria Sky China 2014-1, which priced today, is the first placement of an asset backed securities in China by a European automaker.
Volkswagen has obtained ratings from both Fitch Ratings and Moodys Investors Service on its $800 million renminbi ($128 million) securitization of Chinese auto loans.
Controversy over the Mexican equipment lease sector
After contracting sharply last year amid regulatory uncertainty and an economic slowdown, Brazils structured finance market now appears to be poised for a recovery.
Five new originators of Russian RMBS debuted last year; players say the issuer stable will keep growing.
Investors no longer feel limited to their own country for securitization investment opportunities; they are becoming comfortable with the risks and rewards of investing in and owning a global book.
Vice President of Regulatory Compliance
Firm: Clayton Holdings
In the news: How Ability-to-Repay Rules Could Reshape RMBS Market
Unlike their existing risk-sharing programs, which have drawn $12.5 billion of private capital into the mortgage market by referencing $454 billion of mortgages since their July 2013 inception, some of the latest deals transfer the first loss sustained when a homeowner stops making payments.Current Issue