September 1, 2013
When Mexican finance minister Pedro Aspe met Nicholas Brady in 1988 to discuss Mexico’s problems during the Latin America debt crisis, what he sought was a smaller debt burden for his country.
While Brady sympathized, the former US Treasury Secretary said his government’s role was simply to help facilitate the process: it wasn’t a bank; and since Mexico had borrowed money from private lenders, it needed to strike a deal to roll over its debt through more financing.
“There are a lot of lessons we learned, some of them the hard way by not being careful with our debt,” says Aspe, now co-chairman of Evercore Partners, an independent investment advisory firm.
Aspe’s single most important le
Latin America’s economies are on increasingly divergent
paths. Bond investors must now make tough choices between the likely winners and losers. By Mariana Santibáñez