Unique non-performing deal debuts in Latin America

Argentina's Banco Bansud SA (Bansud) has swept into the market with some early spring cleaning as its latest $360 million privately placed ABS transaction backed mostly by non-performing loans marks the first of its kind in all of Latin America. Sources say the intriguing deal may inspire other industry players to follow suit and begin cleaning out their closets.

The deal has been called Saneo Serie 01 Cartera Comercial (Saneo), which, loosely translated, means to clean out or protect against damage. And the objective of this deal is just that: Bansud is attempting to improve its financial standing by cleansing its balance sheet of problematic loans and at the same time reaping the tax benefits.