Offshore insecurity

Led by the country's bank originators, South Africa's securitisation market has seen explosive growth over the past few years. But trepidation offshore has cast new uncertainty over its future direction and prospects for growth. Mark Pengelly reports

Securitisation in South Africa underwent the best of times and the worst of times during 2007, according to a recent report by Absa Capital. During the first half of the year, the country's main originators of securitised paper had reason to be bullish. Although South Africa's banks came comparatively late to securitisation, its employment as a funding diversification and risk management tool has flourished over recent years.

Growth in the market has been dominated, in particular, by bank