Mexico's market sprang back to life in the third quarter, as issuers and investors alike reconciled themselves to steeper interest rates, churning out more floaters priced against the shortest-term benchmarks. "Investment funds want paper that is revised more frequently and that's what they got," said a Mexico City-based banker.
Seven originators swept away the paralysis that had struck issuance in the second quarter. The housing sector came on strongest, with real estate originators Su Casita, GMAC Hipotecaria, Fincasa, and Hipotecaria Nacional coming to market. Aside from a deal jointly originated by GMAC and Su Casita, the most popular collateral remained bridge loans for construction. Sized at the local currency equivalent of $47 million, the GMAC/Su Casita transaction marked the close of a two-issue program.