Following a smooth passing through Mexico's congress, the first part of President Vicente Fox's financial reform has kicked in, and the attempt to facilitate the development of the local long-term debt market is well under way with the recent invention of certificados bursatiles.

The certificados will replace obligaciones, often seen in MBS transactions like Sucasita. However, the role of certificados in structured and securitization transactions are secondary - the long-term debt market is the primary. "What we had seen in the past, and was the case for the last three years, was the use of PMPs or medium-term promissory notes," said an attorney in Mexico. "And there was a significant interest in the market, to issue longer term paper, meaning seven years or something like that."

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