MIAMI - Russia's push into the world of existing asset securitization isn't even two years old, and there is already talk of potential bottlenecks on the demand side if the breakneck pace of growth holds firm. These remarks were made at last week's Information Management Network Spring ABS 2007 conference.
There were about $1.5 billion of deals last year. That is projected to swell to between $3 billion and $4 billion for this year, which could double yet again in 2008. "It's not an easy proposition to place this kind of volume into [the ratings] bracket," of triple-B and single-A, said Michael Strange, director of financial institution securitization at Barclays Capital. One solution, he mentioned, would be monoline participation.