Mexico's Infonavit places country's largest RMBS

In a persuasive sign that concerns have faded in Mexico over contentious presidential elections, state mortgage agency Infonavit priced the domestic market's largest RMBS ever at a rate lower than a deal the agency issued in mid June, roughly two weeks before the vote.

The issuer placed a deal for 413 million inflation-index units (UDIs) ($141 million) at 5.09% compared to June's yield of 6.25% on an RMBS totaling 273 million UDIs. The spread also tightened, to 115 basis points over comparable local treasurys from 125 basis points. Buyers included pension funds, bank desks, insurance companies and private banking, according to a source close to the deal. Fitch Ratings and Standard & Poor's rated the deal triple-A on their respective national scales.