Mexico

Political wrangling on both sides of the Atlantic this week produced contrasting fortunes for two currencies in futures markets, with the Mexican peso receiving a boost and the British pound slumping to some of its worst ever levels against the US dollar.

Lat Am bond bankers said that Donald Trump’s floundering campaign to become US president could help Mexican borrowers as utility Comisión Federal de Electricidad (CFE) returned to bond markets with a 10 year benchmark.

Mexican peso futures surged on Monday following the second US presidential debate, rising to their highest level in almost a month as Republican candidate Donald Trump failed to knock a dent in Hillary Clinton’s polls lead.

Three Mexican borrowers are meeting bond investors this week as Latin American issuers continue to look to take advantage of low rates.

A green bond to be used to construct Mexico City’s new airport led the way for a storming day of issuance in Latin America on Thursday, leaving no doubt that EM debt markets are still hot.

Mexican oil company Pemex pressed ahead with a new issue on a tough Tuesday in markets, raising $4bn of seven and 31 year bonds that both traded above par despite Lat Am credit in general remaining volatile on Wednesday and Thursday.

Some 54 anchor orders of more than $50m each helped Mexican oil company Pemex to raise $4bn of new bonds on Tuesday despite volatility sweeping Lat Am bond markets following a sell-off in US Treasuries.

Mexico-based lender Banco Inbursa — part of the Carlos Slim empire — began marketing a planned 10 year senior unsecured bond on Thursday as it looks to tap international bond markets for the first time in over two years.

CME Group has expanded its reach in both Asia and Latin America, with Hong Kong and Mexico recognising the firm as a central counterparty (CCP).

Three Latin American corporates announced roadshow plans on Wednesday as appetite for EM credit shows no sign of softening.

The second in command in Mexico’s public debt office has left his job to become CFO of state-owned electricity utility, Comisión Federal de Electricidad.

Gulf supply remained the dominant theme in CEEMEA bonds again this week as markets reopened in buoyant mood after Monday’s US holiday.