Latin America's faded cross-border market for MBS deals is showing signs of life. In mid-August, First Costa Rica Housing Corp. issued a 15-year, US$61.5 million bond. Analysts say it's the first true international MBS securitization out of the region since Argentina's Banco Hipotecario Nacional placed a US$115 million deal more than two years ago.
Snapped up by two U.S. insurers, the senior tranche of the MBS came in at US$49.6 million and priced 95 basis points over LIBOR. "I'd say we secured it pretty tight," said Devinda Subasinghe, vice-president of the structured finance group at Raymond James, which structured and placed the deal to market. Law firm Greenberg Traurig, LLP advised.