January 17, 2014
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.
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 long.
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
Mexico’s foresight, nimbleness and use of innovative structures marks it out as Latin America’s most sophisticated sovereign borrower