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.

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