Emerging markets

Only three months after Mexican GSE Fovissste issued its first cross-border RMBS, the lender's deals are facing ratings trouble.

Brazil’s upgrade by Standard & Poor's on Thursday could naturally have an impact on the country’s structured finance ratings. The agency upped the foreign currency and local currency ratings one notch each, to 'BBB' and 'A-,' respectively.

Standard & Poor’s Director Eric Gretch said the agency expected financial future flow transactions from new jurisdictions, although he did not offer an anticipated timeline in a video posted on S&P’s Web site.

Australian and New Zealand Bank Group (ANZ) test drove the first covered bond under Australia's new legal framework.

A domestic Mexican CMBS with a number of multinational companies attached, including Wall Mart, is expected out in the first quarter of next year, said a market source familiar with the matter. The planned size is Ps1 billion ($75 million), with a ten year maturity.

Chris Corcino has moved over to GE Capital, where he is a senior vice president in the global syndications & emerging markets group. Prior to GE Capital, Corcino worked on Latin American ABS at Deutsche Bank. He also had a stint at Standard Bank that began when the South African bank was looking to beef up its LatAm effort in 2006. He left the following year, around the time Standard appeared to be pulling back from Latin America.

Because of still challenging market-making conditions, Credit Suisse Group is set to either downsize or cut altogether some securitization businesses and fixed-income units.

Securitization pros have had to constantly come up with new deal structures to respond to challenges posed by the ongoing financial crisis.

The Commercial Real Estate Finance Council in Japan plans to revive CMBS by implementing new market standards.

Reinstating trust in the ratings process is key to growing investor interest, according to buyside participants in a Tuesday panel at the ABS East conference hosted by Information Management Network.

U.S. structured finance players are exploring new frontiers. With ABS issuance volume not as robust as it once was, yield-hungry investors have turned to esoteric assets.

The Dodd-Frank Act's call for the creation a self-regulatory organization (SRO) or other entity to assign new ratings was mostly panned by structured-finance industry participants, but relying on existing Rule 17g-5 - the industry's preferred alternative - may have a fatal flaw.

The banking craze in Mexico for state and municipal debt may be dying down, and signs point to a revival in market issuance. The closing on Sept. 23 of a Ps3 billion ($221 million) bond backed by payroll taxes from the state of Chihuahua could usher in more bond deals from sub-sovereigns.

Not too long ago, Turkey's Sekerbank was a name with no resonance in the structured finance world. Then, in mid-summer, the bank issued a covered bond deal that broke two barriers. It was the first of its kind from Turkey and the first covered bond globally to be backed by SME loans. Some covered bond purists even questioned whether SME collateral disqualified an instrument from being called a covered bond, which are overwhelmingly secured by mortgage pools. Turkish law has two separate regulations, one for covered bonds backed by mortgages and another for those secured by any of a wide range of other assets.

Moody’s Investors Service in a recent report warned of the danger posed to Hungarian covered bonds of a Sept. 19 law that allows mortgages denominated in foreign currency to be repaid in Hungarian forints. The exchange rate for the switchover represents a discount from the prevailing one.

In removing about 134 tranches of future flow deals from its structured finance bucket, Moody’s Investors Service will no longer apply regulatory rule 17g-5 to them, said a spokesman for the agency.

Moody’s Investors Service has modified its criteria for what counts as a structured finance instrument, the agency said today.

ASR just launched a weekly video news update to give our readers a quick rundown of breaking news throughout the week.

Turkey’s Garanti Bank is in discussion with the Overseas Private Investment Corp. (OPIC) over receiving straight funding or a guarantee in a deal that could potentially be a structured transaction, said two sources familiar with the process.