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Mexico’s Bonds Set for a Rebound as Downgrade Fears Oversold - BBVA

MEXICO
  • 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.”

MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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