Over Thanksgiving break, Mexico's Metrofinanciera dropped a huge turkey on the laps of its bond investors, roughly Ps4.19 billion ($308.3 million) worth. That's how much the company revealed it owed the financial trusts of its securitized debt as of the end of the third quarter.

The disclosure put a firm number on a practice that had come to the attention of market players only a couple of months ago. Homebuilders that owed the construction loans in Metro's collateralized ABS portfolios were not depositing their interest and principal payments directly in the trusts, as required by the securitization documents. They were still paying the company directly as if the assets had never been sold to trusts. Metro, in turn, would deposit the funds in the corresponding trusts.

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