Andrey Suchkov, Head of Securitization at VTB Capital, spoke at the Russian Mortgage Congress, held on February 19, 2015, in Moscow.
“For the Russian securitization market 2014 was quite successful, and market volume growth exceeded 60 percent,” said Andrey Suchkov in his presentation titled “The current situation and outlook of securitization market in Russia.” During this period, more than 28 deals were closed for a net sum of more than 250 bn rubles, which amounted to an estimated 14 percent of the total issued mortgages. The significant growth illustrated by these figures demonstrates that securitization has become a sought-after mechanism to attract long-term mortgage financing and is now regularly used by banks, as well as private sector investors.
While discussing the securitization market outlook in 2015, Andrey Suchkov noted that availability of funding sources will be one of the key factors contributing to the overall market development. These sources can range from government initiatives, such as the Agency for Housing Mortgage Lending (AHML) program, to REPO transactions, already actively used by the leading mortgage market players. These instruments will maintain the active dynamics of the industry and prevent any substantial decrease in market volume.
At the Russian Mortgage Congress, organized by Cbonds and Rusipoteka, representatives of leading mortgage and securitization market companies, as well as industry experts discussed key trends and the outlook for the industry.
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