XL Capital Assurance Inc. announced that it has concluded its first financial guarantee transaction – “a $250 million guarantee for a future flow securitization of wire transfer payments by Banco National de Mexico,” a first in Latin America.
The details are complicated and involve selling Diversified Payment Rights through a New York Trust. The banking aspects were handled by Bank of America. XLCA’s innovative solution guarantees the payments on the securitized senior notes, and was a major factor in obtaining a triple-‘A’ rating for the transaction from Standard & Poor’s.
T. Wynne Morriss, Sr. Managing Director-Structured Single Risk at XLCA, anticipated that their would be more opportunities in the future. ” We look forward to working with both new and established issuers in structured single risk sectors such as future flow securitization and project finance, as well as with issuers looking to efficiently structure consumer and corporate asset securitizations,” said Morriss.
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