Over the last two months a spring chill has gripped ABS issuance in Mexico, jeopardizing the country's reputation as the hottest domestic market in the emerging world. The interest-rate fears besetting the U.S. were bound to seep south, but the severity of buyside retrenchment from structured paper, nonetheless, is startling, given the bustling previous two quarters and the still-growing pipeline.

"This is the end of the cycle of easy money," said Tonatiuh Rodriguez, head of investment at Afore XXI, a pension fund party controlled by Prudential International Investments Corporation, with Ps28 billion pesos (US$2.5 billion) under management.

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