March 7, 2018
An issuing frenzy has taken over the Mexican bond market — at least for the moment. But uncertainty is likely to grab a hold of the market as the general elections approach and voters get ready to pick a new president. Andrés Manuel López Obrador, the leader of the leftist National Regeneration Movement, or Morena, is up in the polls, but investors and business leaders are not sure what to make of him.
“What we have been seeing is pressure from the banks for issuers [to take care of funding needs] in the first four or five weeks of the year,” says the CFO of a recent high-yield issuer from Mexico. “When you get to April or May, things are going to get complicated.”
In the runup to the July e
So far this year, Mexican bond issuers have run the gamut from the sovereign to a cash-strapped steelmaker. But as the July elections approach, the field is dwindling. By Aleksandra Snesareva