BofA scratches bearish call on Mexico bonds after fiscal surprise

Mexico, peso, Santander, Mexican, bank, currency, EM, LatAm, 575
By Oliver West
22 Feb 2021

Better than expected fiscal data from Mexico has led Bank of America analysts to conclude that the country’s fiscal metrics “could compare favourably to peers for longer” and upgrade their recommendation on the sovereign’s external debt from underweight to market weight.

The Mexican economy shrunk by 8.5% in 2020, a contraction only matched by Argentina (10.4%) and Peru (12%) among major economies in Latin America.  

One reason Mexico has underperformed most of its peers has been the limited fiscal stimulus implemented to combat the coronavirus pandemic. In the latest ...

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