The securitization market is plowing ahead in South Africa. Mirroring the scene in other emerging markets, securitizers are keeping deals in domestic currency in response to increasing local depth and hurdles to the crossborder. "It's a very domestically oriented market," said Arjan Verbeek, vice-president at Moody's Investors Service.

Most securitizable assets are denominated in rands and sources say exchange-rate swaps beyond three years are prohibitively expensive. Other obstacles loom large as well. "You have to be careful with exchange controls," said Alex Gress, an associate with the structured finance origination group at JPMorgan London. In addition, the local investor is growing increasingly sophisticated, emboldening securitizers to push into new assets.

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