While the subprime meltdown kept reverberating through global credit markets during the past two weeks, a breakthrough transaction quietly priced in Brazil, and ironically, the deal is a securitization of residential mortgages.

On August 10, Banco ABN Amro Real sold a R$99.3 million ($48.8 million) RMBS, with the R$86.4 million senior piece going for 9.57% over the Taxa Referencial de Juros (TRJ), a savings deposit index, according to a market source familiar with the deal. The yield means the deal priced at a premium of 101.59, testament to the appetite for this novel instrument, while the rest of the world was caught in the subprime whirligig. Retail investors bought into a third of the senior notes, with banks grabbing the rest.

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