While Mexican domestic RMBS took flight a few years ago, CMBS has been sputtering to get off the ground. But some commercial properties in Mexico have already joined the securitization game, with three U.S. CMBS this year folding in Mexican collateral, according to sources. There is potential for more, as long as U.S. investors are willing to accept Mexican risk, which can, at any rate, be heavily mitigated.

The demand for collateral from south of the border is coming from banks in search of higher yield, as spreads in the U.S. market have shrunk to unappetizing levels. "By the end of the year, we should see at least one more hotel deal" with Mexican exposure, said David Harrison, director in the structured finance group at Fitch Ratings.

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