Spreads on Mexican Bonds Attractive
1:58 PM
Always a currency risk, the more stable Mexican peso has invited higher risk astute investors a spread unlike that of its northern neighbor. CPI is running at about 4.4% and short term yields are running over 9%. GDP should be growing at about 3.88%. There is a current account deficit of 2% of GDP. The upcoming elections will no doubt add volatility to the market and the debt yields.
TAKE A LOOK AT THE YIELDS OF SHORT TERM MEXICO TREASURIES
There has been a 2.5% YTD gain in the Peso vs. Dollar. Rolling the ladder on the 28 day cetes minimizes that risk by almost a half for the yield. The dollar has been gaining some strength in global currencies so this could lead to higher risk
CHART OF MEXICAN PESO VS. DOLLAR
TAKE A LOOK AT THE YIELDS OF SHORT TERM MEXICO TREASURIES
There has been a 2.5% YTD gain in the Peso vs. Dollar. Rolling the ladder on the 28 day cetes minimizes that risk by almost a half for the yield. The dollar has been gaining some strength in global currencies so this could lead to higher risk
CHART OF MEXICAN PESO VS. DOLLAR
Posted by OscarNOW
on 1:58 PM.
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