Capitalizing on Colombian investors' new familiarity with the residential housing sector, Banco Colpatria issued a Ps73 billion (US$25.8 million) MBS on Dec. 18. The country's homegrown Fannie Mae, Titularizadora Colombiana, gave birth to a domestic MBS market last year with two issues totaling Ps588 billion (see ASR 11/25, p. 16) and Colpatria saw an opportunity to move in as well.

"Investors became more comfortable with assessing the sector," said a source close to the deal. He pointed out that the Colpatria paper enjoys the same tax exemption as Titularizadora's bonds - one of the main reasons investors had embraced the latter.

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