Mexico may have developed some predictable patterns in the bond
market since 2009 — typically issuing in dollars at
the start of the year with a five or 10-year maturity. But last
year, it changed course.
SOVEREIGN ISSUER/LIABILITY MANAGEMENT: United Mexican States / Mexico €1.6bn new issue and tender
Mexico’s foresight, nimbleness and use of innovative structures marks it out as Latin America’s most sophisticated sovereign borrower
The US’s worrisome fiscal situation —
highly-charged political discussions over the
country’s debt ceiling and planned budget
tightening — sparked market volatility at the end of
2012, and forced the sovereign to reconsider its plans.
Instead of borrowing medium-term debt, Mexico looked
It reopened its 2044 bond in early January, adding $1.5
billion after drawing $3 billion in demand. The sovereign was
applauded for anticipating potential US Treasury moves and
heavy bond market supply.
"It was a more difficult tenor to issue at the beginning of
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