For some time, bankers, analysts and others with a stake in Mexico's teething RMBS market have been trumpeting the sector's promise. But, with a cross-border deal yet to come out, it has been difficult to gauge whether foreign investors are genuinely receptive. Judging from the results of a domestic deal priced last Tuesday, it's clear at least a few are.

In volume terms, GMAC sold about a fourth of a domestic RMBS transaction to two offshore investors, according to a source at the company, marking a first for the primary market. Five investors - including hedge funds - bid on the deal, said another source close to the transaction. The fact that the product was mortgage-related proved to be a stronger selling point than the recent drop in the dollar, which has lured more risk-hungry investors into domestic currency-linked paper in other corners of the emerging-market world. "These were investors who had already identified the Mexican mortgage market as something they wanted to get into," the source said.

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