Panama’s Banco General has short-listed three banks to arrange an issue backed by diversified payment rights, scheduled for early next year, according to two market sources.
The deal would mark the Panamanian bank’s debut in this asset class. General had sent out RFPs only to banks that provide the originator with medium-term trade finance, one of the sources said. The would-be issuer is seeking a proposal that includes funding on balance sheet and via private placement investors.
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
