The notoriously weak mortgage market in Brazil finally looks ready to grow. The first RMBS transaction done by a local bank securitizing its own mortgage portfolio should be the first of many similar transactions.
In August, ABN Amro’s Brazil subsidiary, Sudameris, took the plunge and issued a R$100 million ($51 million) RMBS. This made it the first retail bank to securitize its own portfolio of mortgages. Several RMBS have already been issued in Brazil, although always by real estate developers, not banks. Caixa Econômica Federal, a government-controlled bank, should be the second to...
