Gathering confidence

South Africa's securitisation sector is finding its feet again, with spreads tightening and a smattering of fresh issuance coming to market. But rising domestic interest rates and breaches in arrears triggers on existing issues are raising the spectre of default. William Rhode reports

risk-081001-40-gif

South Africa's securitisation market appears to be on the verge of escaping from its biggest lull in years. In late 2007, contagion from the global credit crisis triggered by bad US subprime mortgages eventually spread to the country. Planned deals were shelved, while the market's runaway growth slowed as new issuance dipped to a fraction of its former levels.

Events in August 2008 have caused some local market participants to take heart. The month saw two securitisation deals in as many weeks

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here