Small but steady, the Argentina deal machine continues to crank out ABS in the consumer and export sectors. Among recent deals closed was Secupyme VI, a US$1.4 million export-backed transaction benefiting wheat farmers. Structured and partially guaranteed by local agency Garantizar, the deal priced at an exceptionally low 3.9% yield. Moody's Latin America rated it A1.ar' on the national scale. Even with the short tenor of 300 days, the transaction yielded the tightest rate for the Secupyme series, a sign that local investors' appetite for ABS is far from sated. "We haven't noticed any kind of slowdown in the sector," said Martin Fernandez, an analyst at Moody's.

Earlier last month, Banco de Valores closed Tarshop VIII, a Ps21.7 million (US$7.1 million) deal with an 18-month expected life. That deal priced at 8.5%, according to a source. Standard & Poor's rated the transaction raAA' on the national scale.

Elsewhere in Argentina, up ahead is a transaction backed by loans to members of military credit union Mutual Sociedad Militar. The senior tranche is capped at Ps12 million (US$3.9 million) and is rated AA(arg)' by Fitch Ratings.

Collateral is comprised of personal loans to active military and police as well as veterans. The structure has a 20% enhancement from a subordinated piece. The credit union is servicing the collateral, which has no delinquencies beyond 30 days and features an average seasoning of two years.

Also in the pipeline is the first Argentine deal backed by receivables from general-purpose credit cards. Sized at Ps12 million (US$3.9 million) the senior tranche of the deal is rated Aa2.ar' by Moody's. Backing the deal are receivables from MasterCard and VisaCard issued by Banco Privado de Inversiones (BPI). A subordinated piece provides an enhancement of 20%. BPI is the primary servicer.

Pharmacy to give Chile shot in arm

Meanwhile, all is quiet on the western front of the Andes. Chile has yet to shake off the languor that envelops its domestic market in the first half of every year. Up ahead, however, is a transaction that is a debut for the country's pharmaceutical sector. With ABN AMRO Securitizadora as lead, the deal is backed by loans originated via a card owned by SalcoBrand, a pharmaceutical company. Collateral is comprised of approximately 177,500 loans, while two reserve funds enhance the transaction

The structure is split into a Ps8.4 billion (US$13 million) senior piece and a Ps2.1 billion (US$3.3 million) junior one. Moody's affiliate Humphreys has rated the transaction AA' on the national scale.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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