Banks in Mexico are no longer ceding the RMBS arena to nonbank real estate companies known as Sofols. Banco Mercantil del Norte (Banorte) recently registered a Ps10 billion ($925 million) RMBS program, which is being led by the brokerage arm of the originator. Other banks are expected to follow.
"Investors are asking for larger [RMBS] volumes," said Luis de la Pena, an associate director at Fitch Ratings in Monterrey, citing one of the attractions for local banks. The idea is that there are caps that institutional investors can purchase in each deal and bigger sizes will give investors more wiggle room. The banks with the largest portfolios can produce the kind of RMBS volumes these investors are after.