After prolonged periods of excess liquidity and easy credit, US sub-prime mortgages spread contagion amongst international investors last summer and caused a virtual shutdown of global credit markets. While Latin America has been relatively insulated from sub-prime exposure, widening credit spreads, insecurity over rating agency methodologies and the downgrading of monoline insurers has stunted appetite amongst local investors for asset backed securities. Meanwhile, current international pricing of securitizations make executing cross border transactions a major obstacle for arranging bankers. Local originators, still wanting the same spreads they enjoyed last year, now face a major challenge – how do they raise much-needed funding to maintain their commercial growth?
Euromoney Seminars’ 7th Annual Securitization in Latin America Summit (SiLAS) is your chance to hear firsthand from the most influential securitization bankers on how the global credit crunch has impacted local issuers’ funding options, drawing on comparisons with other emerging markets around the world, and their predictions on when the market will recover.
Key issues to be discussed include:
- Is there sufficient liquidity in local markets to support commercial growth?
- What kind of liquidity premium is required to place an ABS deal in the current market?
- Who will be the new buyers of BB/B paper – will multilaterals take the place of hedge funds?
- What is the long term impact on rating agencies? Will the current market turbulence have an impact on Latin American countries’ sovereign ratings?
- Future of the monoline insurers – will investors want wrapped paper in the future?
- Assessing the performance of Latin American ABS that have been placed in the market since the credit crunch
We look forward to welcoming you to Miami in May.