HONG KONG -- THERE MAY BE AN upside to the “brain drain” phenomenon now gripping the country.

According to a top economist at French investment banking giant BNP Paribas, the Philippines can raise more money by selling securities that are backed by the contracts of overseas Filipino workers.

Andrew Freris, BNP Paribas Corporate and Investment Bank chief economist and head of credit research, suggested the securitization of potential remittance flows and investing the proceeds to help the country create a pension fund, a housing fund or a mortgage fund for OFWs and their local dependents.

“Securitizing contracts is not something beyond the imagination, particularly if it’s done voluntarily ... this is something I know you are in the process of looking at,” Freris said during a dinner hosted by BNP Paribas for the team from Manila led by Finance Secretary Margarito Teves, Development Bank chair and former Labor Secretary Patricia Sto. Tomas and DBP president Reynaldo David.

The Philippine officials were on a roadshow for OFWs here.

Securitization is the practice of raising cash by converting assets -- such as loans or other receivables -- into marketable securities and selling them to other investors.

“Immigration is not a problem,” Freris pointed out. “Immigration is a consequence of a particular stage of economic development and therefore, in handling this hugely valuable asset, you [may] apply the same approach to wealth management.”

He said the Philippines could pool the OFW contracts and sell them to, or with the help of, a reputable institution.

Securitizing remittances had been done in Latin America. He said European banks were able to issue secured bonds before they actually had the money—based on the expected amount of remittances that would enter the system through wire transfers. The proceeds were then reinvested.

Freris said the best way to go about it would be to apply portfolio management techniques to the export of human capital.