While Russia still makes some players nervous (see related story, p.1), specialty arranger Greenwich Financial is betting on the country and its originators. The previously U.S.-centric shop snuck onto the emerging market scene in July, with the first transaction backed by Russian auto loans (see ASR 8/1/05). On the sidelines of the Securitization in Emerging Markets conference held by the New York Society of Security Analysts, ASR sat down with senior vice president Dmitri Dorofeev to discuss intriguing features of the transaction and what kind of MBS a new law in Russia would most favor, an area that the firm is pursuing.
ASR: In your auto-loan deal, there was a small inverse floater of $100,000 sold in tandem with the $43.7 million A1 piece. Could you explain how this worked and why you did it?