Fenix Capital Group, a company specializing in acquiring and managing distressed debt in Mexico, has its eyes set on a pool of troubled assets that could end up backing the country's first domestic securitization of non-performing loans (NPLs), according to Gonzalo Robina, director of acquisitions at the asset administration division of Fenix. Speaking to ASR on the sidelines of Moody's Investors Service fifth annual Latin American Securitization Briefing, Robina said the company expects to structure an ABS of 15,000 distressed loans held by the Savings Banking Protection Institute (IPAB) and SAE. The transaction is sized at between $250 million and $350 million.
Robina also said that U.S. investors are taking a look at distressed debt in Mexico. "In one of our distressed asset portfolios we're giving investors an IRR [internal rate of return] of 25% after taxes, so it's really attractive for them," he said. The high yield could be enough to trump fears of snapping up ailing assets in a foreign currency, Robina suggested. Fenix expects a U.S. fund to invest between $60 million and $80 million in one of the Mexican company's distressed portfolios by January.