A new financing vehicle is poised to take off in Mexico, and it has structured finance players scrambling to make deals. What's interesting is that, at its core, it's an equity product.
Boosters of capital development certificates (CCDs), as they are known, see them as an unprecedented opportunity to invest in infrastructure and other sectors of the economy sorely lacking in capital. ABS devotees are involved in part because Mexican banks and the local offices of international banks typically have teams that are too small to divvy up work on a corporate debt/structured debt basis. Indeed, often the equity and DCM people are on the same team.