BanChile takes hefty MBS on road Though interested, investors don't yield to pricing pitch

Banco de Chile's securitization arm is roadshowing the country's biggest ever MBS. Sized at the local currency equivalent of US$86.4 million, the deal will push the total housing sector bonds in Chile - which include securitized leases and other like assets - beyond US$500 million (see ASR 9/16 p. 32 for Chilean ABS record).

With domestic interest rates slumping at all-time lows, chances are the deal will earn BanChile Securitizadora a generous excess spread over the real 8.91% rate on the residential mortage pool. But the lead, say sources, may be too ambitious in pushing for rates approaching those of PRC treasuries.