For 2007, Russia, Turkey and Kazakhstan will keep yielding the kind of fruit craved by players in structured finance. In Russia, in particular, sources said, expect a bumper crop.
That country emerged, or rather erupted, as an epicenter of structured product this year, and players say the flow will only pick up. "Russia is increasingly stable," said David McCaig, head of asset securitization at WestLB Capital Markets. "We've got rising levels of asset performance and investor acceptance - it's just going to be a continuing theme." That theme will resonate with more and more players as origination volumes rise, new issuers materialize, and untapped asset classes come on line, sources said.