Russia's potential is becoming synonymous with existing assets. Traditionally in emerging markets, offshore future flows provide the opening theme of the cross-border securitization story - only after significant activity and a good deal of time do players segue to onshore existing assets. In Russia, the shift has happened much quicker.
"The trend will continue for existing assets over DPRs," said one London-based banker, voicing the industry's consensus view. DPRs refer to diversified payment rights, which have recently formed the most active sector in financial future flows. "Securitizing existing assets will give [originators] alternative funding plus regulatory capital relief," he added.