MIAMI, Fla. - In the wake of the Argentine pesification and default, crossborder MBS deals became the nio terrible of the Latin asset family. "Argentina derailed the cross-border MBS market and has caused a re-evaluation of the emerging market MBS in general," said Bear Stearns Senior Managing Director Jonathan Lieberman on the sidelines of Euromoney's Securitization in Latin America Summit.

The sovereign collapse underlined the asset category's acute vulnerability to such an event and investors and bankers turned to future flows to keep the structured market alive. Crossborder MBS transactions will eventually resuscitate, sources said, with Central America the most likely candidate in the near term and Mexico in the longer term.

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