Central America

Bond bankers expect European investors will have more Latin American sovereigns to occupy them in the future, after Mexico showed that very low yields are still on offer in euros for those issuers that choose not to hedge their currency exposure.

Three positive days in markets pushed Mexico to sell its second deal of the year on Tuesday as Latin America sovereigns become more pragmatic about choosing issuance windows.

Mexico is looking to sell its fifth euro denominated bond in four years after releasing initial price thoughts for six and 15 year tranches on Tuesday.

Some medium term note investors believe the Mexican peso may now be undervalued, a pair of deals in the currency suggested this week.

Medium term note investors believe the Mexican peso may be undervalued, as they took punts with a series of deals in the currency.

Latin American debt capital market bankers proclaimed that Pemex had “validated a new reality” for EM commodity credits in the bond markets after the Mexican state owned oil giant issued $5bn at new issue concessions so high that, until recently, they would have been unthinkable.

trueEX, a fast growing swap execution facility (SEF), has executed the first dealer to client Mexican peso interest rate swaps trades on its platform.

Mexico-headquartered home appliances company Controladora Mabe is offering bondholders a fee to enable Chinese group Qindao Haier to buy General Electric’s share in the borrower.

Mexican infrastructure and construction company Empresas ICA confirmed that it would not make a $6m bond interest payment due on January 25 as it hired a new official to negotiate with bondholders.

Mexican infrastructure and construction company Empresas ICA confirmed that it would not make a $6m bond interest payment due on January 25 as it hired a new official to negotiate with bondholders.

Lat Am bankers said that the 15bp-20bp new issue concession achieved by Mexico in its first deal of the year was unlikely to be bettered by anyone soon after the sovereign raised $2.25bn in a tough market.

There may be a new man in charge at the Mexican debt management office, but bankers were just as effusive as ever over its $2.25bn of 10 year bond, its first issuance of 2016, on Wednesday.