The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Mexico set for an MBS takeoff

All the fundamentals are in place for rapid expansion of the Mexican MBS market. When financing structures are fine-tuned, foreign investors should move in to boost growth. Felix Salmon reports.

INVESTORS LOOKING FOR long-term growth in mortgage-backed securities have to hope for more than the occasional developed-market housing bubble. Rather, they would seek out a market with relatively little mortgage penetration, giving lots of room for growth. There would also be strong population growth, especially among people aged between 20 and 40; an economy with low long-term interest rates; and a government where legislators from all parts of the political spectrum are agreed on the need to build much more housing stock and sell it on the private market. Finally, of course, there would be well-developed domestic capital markets, including pension funds looking for long-term investments, and lender-friendly bankruptcy laws allowing for repossession in the event of default.

No country fits the bill better than Mexico. According to official projections, the number of households in Mexico will have increased by 59% between 2000 and 2020, to 36.3 million. The total mortgage portfolio in the country will increase by much more than that: just 11.1% of GDP today, it is conservatively projected to be 27.7% of GDP by 2020. And if private-sector mortgages continue to grow at their present pace, the sky is the limit: the number of mortgage loans originated by building societies (sofoles) and banks grew by more than 50% in 2005 alone.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree