Argentine consumer deal Consubond XX closed last week. Brought to market by Banco de Valores and Compania Inversora Bursatil, the Ps11.2 million (US$3.8 million) senior piece priced at 9%. The bid-to-offer ratio was 3.5X. "Demand shows that the market is now capable of absorbing larger transactions," said Cristian Calderon, head of capital markets at Inversora. A sharp tightening from the last Consubond deal provides another sure sign that investor appetite is on the rise. The senior pieces of both Consubond XIX and XX are rated A+(arg)' on the national scale by Fitch Ratings, but the former priced 400 basis points wider, at 13%. That deal closed June 30.

Collateral for the Consubond program is comprised of consumer loans originated by Banco Saenz. The XX transaction had enhancements in the form of two subordinate pieces. Fitch rated a Ps2.1 million (US$714,000) B' tranche BB(arg)' and smaller equity tranche, CCC(arg)'. The legal final maturity is two years, although the expected maturity for the senior tranche is five months.

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