Emerging markets

After the financial crisis, Turkish banks found that they could continue to securitize diversified payment rights without the by-then worthless insurance wraps. Some banks have found that they can also do deals without arrangers from abroad.

More diversity may be on the way for Russia’s traditionally mortgage-bond monopolized securitization market, according to a report by Standard & Poor’s.

The deal from specialty lender International Investment Group is backed by loans to LatAm obligors. More issuance may be ahead.

The rising costs for banks to hold even low-risk, short-term loans — courtesy of Basel III — is a powerful incentive for them to offload their trade finance receivables into securitizations.

China’s State Council introduced a series of measures that support the country’s developing securitization market but it won’t be enough to significantly boost issuance in the short-term, said Fitch Ratings.

Upgrades might be in store for some Russian residential mortgage-backed securities (RMBS)

In late April, the Turkish Catastrophe Insurance Pool issued its first catastrophe bond; conditions would seem are ripe for other emerging markets to follow suit.

Controvery over the Mexican equipment lease sector

Despite the regulation-induced slowdown in Brazil, Fitch Ratings expects structured finance in Latin America to remain steady in both issuance and the credit environment.

Greater use of credit bureaus by Russian originators is a credit positive for securitizations in that country.

The catalysts were changes in the models used by Fitch, adverse selection in older mortgage pools, and the sovereign crisis in Europe.

Moody’s Investors Service has changed how it incorporates sovereign risk into structured finance transactions.

After contracting sharply last year amid regulatory uncertainty and an economic slowdown, Brazil’s structured finance market now appears to be poised for a recovery.

Five new originators of Russian RMBS debuted last year; players say the issuer stable will keep growing.

Five new originators of Russian RMBS debuted last year; players say the issuer stable will keep growing.

After contracting sharply last year amid regulatory uncertainty and an economic slowdown, Brazil’s structured finance market now appears to be poised for a recovery.