Diversified payments rights have grown into a pillar of emerging market structured issuance over the last decade. DPR deals have totaled over $16.8 billion in issuance so far, with originators from Turkey and Brazil combined capturing 90% of the marketplace, according to a Standard & Poor's study penned by Directors Gary Kochubka and Diane Audino. The Turkey-Brazil duopoly is likely to keep its lead for a number of reasons, but former Soviet nations are expected to chip away at its pre-eminence. "The direction is east," said James Patti, a partner at Mayer, Brown, Rowe and Maw. "Russia and Kazakhstan are the next two and then we'll see about the Far East."
Puffed up with potential, countries like India, the Philippines and Indonesia haven't produced a single DPR transaction for one reason or another. And they will likely remain outside the orbit of the industry for the medium term, according to DPR veterans who have reconnoitered in these countries and come back unenthused.