March 1, 2006
It would have been unthinkable a decade ago for Mexico then a junk-rated country to sell debt to mom and pop investors in the United States. In the mid-1990s, the US government stepped in to help Mexico with a $20 billion bailout package after a devaluation of the peso. Mexico's so-called Tequila Crisis spread to other emerging markets, wreaking havoc on their economies as well. Nowadays, individual investors see investment-grade Mexican debt as a low-risk way to add higher yield to their corporate bond portfolios, and Mexico is taking advantage of this appetite by offering $1.5 billion in InterNotes. "[This demand] says a lot about Mexico's achievements in debt management," as
In February, Mexico became the first foreign sovereign issuer to sell bonds to retail investors in the United States through a $1.5 billion InterNotes program.