Mexican originator Su Casita issued a two-tranche RMBS last week via sole lead Credit Suisse, reminding players that Latin America's catatonic cross-border market in ABS and MBS did, indeed, still have a pulse. The transaction was apparently the first time MBIA has publicly wrapped a deal from Mexico's real estate sector, which had already witnessed participation by rivals Ambac, FGIC, and FSA.
With the triple-A from Fitch Ratings and Standard & Poor's, a $233 million dollar tranche priced at 23 basis points over one-month Libor. The weighted average life is 8.1 years. A tranche denominated in inflation indexed units (UDIs) for the equivalent of Ps227 million ($21 million) priced at a real rate of 6.47%. The subprime bogeyman that has spooked other markets had no impact on the Mexican deal.