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
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
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