Mexico

Just two months after a dovish US Federal Reserve lured América Móvil to the dollar bond market for the first time in eight years, the Mexican telecoms giant was again able to make the most of benevolent central bank talk on Wednesday as it jumped on a rates rally in Europe for its first euro trade since 2016.

Mexican lender Banorte became the latest Latin American borrower to clinch new debt with exceedingly tight pricing on Thursday, as bond investors showed their hunger stretched beyond top-rated paper.

Just two months after a dovish US Federal Reserve lured América Móvil to the dollar bond market for the first time in eight years, the Mexican telecoms giant was again able to make the most of benevolent central bank talk on Wednesday as it jumped on a rates rally in Europe for its first euro trade since 2016.

Mexico’s largest locally owned bank, Banco Mercantil del Norte (Banorte), has begun meeting fixed income investors as it looks to test investor appetite for the country's credit with a new subordinated bond.

Mexico’s largest locally owned bank Banco Mercantil del Norte (Banorte) will begin meeting fixed income investors this week as it looks to test investor appetite for Mexico credit with a new subordinated bond.

US president Donald Trump’s latest Twitter update about US trade policy brought Latin America's bond bankers hope that Mexico debt might enjoy a better week as he abandoned — for now at least — plans to impose tariffs on Mexican goods.

Spreads on dollar bonds issued by Mexican state-owned oil company Pemex ballooned by up to 50bp on Thursday as a sovereign downgrade led the company to lose one of its investment grade ratings and threatened a second.

Moody’s and Fitch took negative rating actions on Mexico within three minutes of each other late on Wednesday afternoon as concerns over state oil firm Pemex filtered into assessments of the sovereign’s creditworthiness.

Spreads on Latin American bonds widened sharply on Friday after US president Donald Trump said he would enforce tariffs on Mexican imports, with recent issues from the region losing ground.

Latin America bond bankers hope that more Mexican companies will look to sell new debt after Televisa clinched a tight price for its 30 year bond this week to wake up the country’s dormant primary market.

Mexican media company Televisa returned to dollar bond markets after a three and a half year hiatus on Tuesday and was able to increase the size of a planned trade despite offering minimal concession.

DCM bankers said they were sitting on mandates for Latin American bond issuers as another week of volatility in global markets kept the region’s primary markets quiet.