Once exclusively available to the well-to-do, credit has been descending the socio-economic ladder in Mexico and Brazil during the past few years. Easing interest rates and healthy growth, among other factors, are inducting more low-to-middle income borrowers into the credit culture club of Latin America's two bulkiest economies.
Depending on the particular asset class, ABS players have either been instrumental in firing up the growth or are poised to add fuel in the medium-term. And while delinquencies are on the rise with the waves of fresh credit converts, no one sees anything like the subprime mess on the horizon. Not yet, at least.