In Fitch Ratings' latest quarterly report on RMBS performance in Mexico, the agency said that there was an appreciable rise in delinquencies during the fourth quarter.

Macroeconomic trouble was the primary culprit although some portfolios had their own particular problems. Deals backed by collateral denominated in pesos generally did better than those backed by loans in inflation-indexed units (UDIs), which is the denomination of most mortgages in Mexico.

As in the U.S., more recent vintages in Mexico have been exhibiting higher delinquencies. On an encouraging note, transactions originated by nonbank lenders known as Sofols in 2004 and 2005, as well as those issued by banks actually exceeded Fitch’s expectations in the fourth quarter.

On the other hand, during the same period state agency Infonavit — which received more favorable treatment in market pricing than its private sector counterparts last year as the crisis spread — witnessed higher-than-average increases in the delinquencies of its RMBS portfolios

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