May 06, 2022 11:08 GMT
- Battered by the debt pile of a state-run oil company, rising global yields and the prospect of a downgrade at Moody’s, Mexico’s bonds are looking cheap.
- BBVA notes that dollar-denominated notes are trading with higher yields than their rating peers and even above those of nations rated a notch below by Moody’s Investors Service. That leaves room for a rebound once the external backdrop improves.
- “Mexican bonds are particularly cheap in the 10- and 30-year area, which carry the highest yields among Latin American investment-grade sovereign credits,” Snead said. “Fiscal discipline has been a key pillar of President Lopez Obrador’s economic policy.”