The structure that unlocked Brazilian MBS

Author: Danielle Myles | Published: 31 Jan 2012

Brazil became the world’s leading emerging securitisation market last year. And a deal that unlocked its mortgage securitisation sector paves the way for a mature structured finance industry.

The country accounted for more than a quarter of the $40 billion issued by emerging markets worldwide in 2011, according to year-end statistics presented at the American Securitization Forum 2012 in Las Vegas last week (ASF2012).

"If you look at 2006 or 2005, Brazil wasn’t even on the radar," said ASF2012 panelist Paul Burke, managing director at Citi. He predicted that in three to five years time Brazil would comprise half of Latin America’s issuance.

Trade receivables have...