Many Latin American borrowers, particularly in Brazil, are still stymied by high borrowing costs. One way that Brazilian companies have historically reduced these costs has been through securitization. So it’s only natural that many capital markets companies in Brazil are eyeing the ABS market, wondering if and when it might take off.
| Local securitization points the way ahead Volume of deals |
| Source: Fitch Ratings |
The problem is that securitization doesn’t seem to help Latin corporates very much. Interest rates are high not because the companies are uncreditworthy but for broader macroeconomic reasons.
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