Banco de Credito del Peru (BCP), a pro in the future flows world, is poised to price a deal backed by diversified payment rights (DPRs) shortly. Two of its peers that have yet to tap this market, BBVA Banco Continental and Interbank Peru, are reportedly planning debuts. Why this spark of activity from Peru?

For one, cost of funding is attractive right now for DPR issuers in general, as long as they can get their deals comfortably into investment-grade terrain. A spurt of issuance from a handful of Brazilian banks in March and April attest to this. "DPRs are a very accepted asset type," said Maria Muller, senior credit officer at Moody's Investors Service. "We've seen a fair amount of issuance already."

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