Until quite recently, Chile's young securitization industry clung to the real estate sector, churning out bonds that were backed by either residential mortgages or housing lease contracts. But maturing investors, savvier structuring agents and lack of regulatory obstacles are broadening the scope of securitizable assets. "We expect greater developments in the domestic market," said Gerardo Spoerer, CEO of BCI Securitizadora, the agency expected to debut the country's first credit-card backed deal within the next few months (See ASR 8/26 p 15).
It was only in 1999 that amendments to the initially restrictive Securities Law enabled securitizations beyond mortgages, according to a report by Fitch Ratings. Apart from a dollar-denominated treasury-backed deal in late 2000, Chile's local market had not seen a single securitization of an asset outside the real estate sector until Santander Securitizadora priced a US$52 million-equivalent deal backed by Chilean global 2009s on Jan. 7, 2002 (See chart, p. 32). Since then, securitizers have fanned out into other products.