January 4, 2017 |
One market’s loss is another's gain. Bond issues from Mexico all but ground to a halt after Donald Trump won the US presidential election in November. Uncertainty over Trump’s trade policies looms over Mexico, but businesses still have to raise funding, both in dollars and in pesos. With the bond markets closed, or at least priced beyond the reach of many potential issuers, companies will likely look to get bank loans, at least for the short to medium term.
“A lot of people are afraid of what’s going to happen,” says an investment fund manager in Mexico City, adding that companies will have to look at bank debt as a stopgap measure to fund their investment plans.
Mexico is opening its electr
With debt capital markets cool on Mexico, more companies may look to relationship lenders for financing