Russia’s ABS market received a big boost last month following MDM Bank’s $430 million securitization of auto loans. The deal set many benchmarks, not least the highest-rated securitization of rouble-denominated consumer loans. It was also the first true-sale securitization out of Russia to be issued in both 144a and Reg S formats.
But what makes it a pioneering deal is its innovative swap technology. The underlying portfolio of auto loans is denominated in roubles and carries a fixed interest rate. The bonds, issued via a special purpose...
