News centers on PDVSA/Gazprom
Latin American exporters shunned cross-border securitization in the third quarter and banks picked up some of the slack. Despite anxieties earlier in the year, interest rates remained amenable to straight corporate issuance and bank loans, sucking the energy from ABS and future flows. "With the spread compression, [originators] can go without structured deals," said Willem Sutherland, head of Latin America securitization at ABN AMRO. And, looking ahead, the fourth quarter is unlikely to dazzle. Chances are the rate environment won't change dramatically enough to stimulate Latin securitizations over the next couple of months and the Brazilian banks that supplied the oxygen in the third quarter may lay off for a while, given their recent activity.