South Africa - The African frontier

Securitisation is booming in South Africa, with issuance reaching record levels in 2006 and further growth expected this year. But there are signs that the local market may be reaching saturation point. Mark Pengelly reports

Securitisation in South Africa has come so far in such a small time that it has left many in the market wondering where it can go next. Until recently, the practice was not widespread: just five years ago, transactions were sparse and regulatory ambiguity clouded the status of special-purpose vehicles (SPVs) set up to facilitate securitisation deals.

Ever since the country's authorities made clear these SPVs would not be regulated as banks under reforms made to the Banks Act in 2001