A gigantic RMBS priced today in Mexico, originated by the fund for government agency Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado.
Known as Fovissste, this piggybank for government employees issued its debut deal in this asset class for 824 million inflation indexed units (UDIs) ($264 million) at a yield of 5.31%.
The spread over the local comparable treasury was 225 basis points, according to a source close to the deal.
Joint bookrunners were Banorte, IXE, and Merrill Lynch. The trio also acted as structuring agents, along with Goldman Sachs, which doesnt have a local brokerage.
Local pension funds, retail investors and money mangers bought in. The deal was bought entirely by domestic investors. All three leading rating agencies gave it a triple-A on their respective national scales.