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July 2006

South African securitization races ahead


South Africa’s securitization market has developed so rapidly that it has today reached a level of sophistication that the US and Europe took more than 20 years to achieve, according to consultancy firm Deloitte. And the emergence of bank balance-sheet transactions is set to keep bankers busy in coming months.


By Oonagh Leighton

“I think that RMBS will dominate the market”
Andre Pottas, Deloitte

“The market has grown rapidly from inception in 2001 and we have seen a large number of asset classes securitized,” says Andre Pottas, lead partner at Deloitte. “This includes two synthetic CLOs, which were among the first transactions to come to market in South Africa. That is pretty unusual.”

A backdrop of economic and political stability, combined with prudential supervision, has encouraged issuers and investors to embrace the market with enthusiasm.

Since 2000 more than €6.13 billion-worth of structured finance notes has been issued in the market, making South Africa the most prolific issuer of existing ABS...


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