Mexican investors are finding a spike in domestic interest rates and the uncertain trajectory of global events tough to swallow. Their sudden squeamishness has led Deutsche Bank to hold back a Ps672 million (US$67.3 million) seven-year securitization of bridge loans for construction, initially slated for Oct. 15, said sources familiar with the transaction originated by housing lender Su Casita. "Some of this is particular to Mexico, some isn't," said one source. Deutsche aimed to close this week.

Though short-term rates eased at the last auction on Oct. 15, they have yet to approach the levels seen before Mexico's Central Bank tightened the monetary belt earlier this month. The yield on six-month Mexican treasurys - the benchmark for Su Casita - edged out 24 basis points to 9.14%.

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