Mexican housing finance company Metrofinanciera is one step closer to tapping U.S. investors in an inaugural deal. Sized at $100 million, the transaction is being touted as the first cross-border securitization of Mexican real estate receivables. The sticky point in the structure - a cross-currency and interest rate swap - appears to have been resolved, with Dresdner Switzerland coming on as the provider. The swap is needed to mitigate the mismatch between the collateral cash flow and the payments on the notes. The swap will also double as political risk insurance, extending protection against the non-transferability and inconvertibility that can arise when a country imposes capital controls on global financial flows, according to a report by Moody's Investors Service. Lead by Dresdner Kleinwort Wasserstein, the transaction is in pre-road show phase, said a source close to the deal.

Moody's and Fitch Ratings have rated the transaction Baa1' and BBB', respectively. Apart from the swap, the transaction has a 14.20% partial credit guaranty from Mexican state agency Sociedad Hipotecaria Federal, the first time this entity has enhanced a cross-border deal.

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