The tenors of Argentine structured deals are lengthening, a welcome development in a market where many investors had been loath to take on long-term financial risk of any kind. The senior tranches of five of the 12 transactions that priced in October averaged a duration of 12.7 months, terming out from a 6.5-month average duration in the same month last year, as tracked by Buenos Aires-based Gainvest Asset Management. The maturities are being pushed out by the growing popularity of longer-term securitizable assets.
Whereas short-term consumer assets and personal loans were the first to make a meaningful comeback in the aftermath of the crisis that peaked in 2002, longer-term mortgage loans and government bonds are increasingly tapped as collateral. "The fact that investors accept investing in longer-term instruments at reasonable rates is a positive sign in the development of a [structured market] that has reached Ps3.16 billion ($1.07 billion) so far this year," Gainvest analysts said in a monthly report on the state of the industry.