Working with Bear, Stearns & Co. seems to have done the trick for Argentina's Banco Hipotecario Nacional's long awaited fourth transaction BHN IV. The bank priced $156 million in mortgage-backed securities last week. The notes featured a political risk insurance policy from Zurich U.S. Political Risk and were rated A1 by Moody's Investors Service and A-plus by Fitch IBCA.

Bear introduced several changes in the structure from prior BHN deals. "We reduced the legal final maturity of the notes from 20 years to 11 and refined the cash flows," said an official at the bank. More significantly, the transaction featured a political insurance policy from Zurich U.S. Political Risk that enabled it to reach its high rating and the offering was divided in two tranches: a $119.5 million tranche with a variable rate and a $36.5 million tranche with a fixed rate. Both tranches are backed by fixed-rate collateral.

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