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Structured finance in Argentina could see 'active' 2016 - S&P

Bnamericas Published: Thursday, May 26, 2016
Structured finance in Argentina could see 'active' 2016 - S&P

Argentina's structured finance market could see an "active" 2016 with less standardized financing structures and new kinds of assets, according to S&P Global Ratings.

The evolution of inflation, consumer demand, interest rates and unemployment will this year define the performance of structured financing, the ratings agency said in a release.

Since 2002, securitization continues to be the preferred financing instrument in the local capital market due to Argentina's high inflation and interest rates, S&P noted.

During1Q16, the volume of securitized placements rose to US$500mn from US$429mn in the same period of last year.

The three most securitized assets - consumer credit, personal credit and credit card balances - could this year see a decrease in the number of placements due factors such as inflation and interest rates, as well as rising unemployment, according to S&P.

While low compared to other Latin American countries, securitizations of mortgage credit could grow in importance over the next two years as the government aims to promote this segment of the loan market.

Argentine banks are in the medium term expected to increase their mortgage lending and a portion of these loans will be placed in the capital market through securitizations, S&P said.​

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