Post by ukipa on Aug 11, 2011 19:49:01 GMT 4
Beating Brazil Bonds Shows How Calderon Prepared After 2008: Mexico Credit.
Mexican government and corporate bonds are outperforming securities sold by their Brazilian counterparts as investors bet Latin America’s second-largest economy is better prepared to weather a global slowdown.
The 27-basis point drop in Mexican government dollar bond yields in the past month compares with a decline of 25 for Brazilian notes, snapping five straight months of underperformance, according to JPMorgan Chase & Co. The two- basis point increase in Mexican corporate borrowing costs in the past month compares with a jump of six basis points, or 0.06 percentage point, for their Brazilian peers. Previously, Brazilian corporate securities had outperformed for two consecutive months.
President Felipe Calderon’s administration has lined up a $72 billion credit line from the International Monetary Fund, extended debt maturities and shunned capital increases embraced by Brazil, the region’s largest economy, to protect against a slowdown in the U.S., which buys 80 percent of the Latin American nation’s exports.
“They are strengthening public finances here in Mexico,” Gabriel Casillas, chief Mexico economist for JPMorgan Chase & Co. in Mexico City, said in a telephone interview. “The Mexican market has become much easier and flexible to trade as Brazil boosts capital controls.”
Read full article...
www.bloomberg.com/news/2011-08-11/beating-brazil-bonds-shows-how-calderon-prepared-after-2008-mexico-credit.html
Mexico's President Felipe Calderon. Photographer: Chris Goodney/Bloomberg.
Mexican government and corporate bonds are outperforming securities sold by their Brazilian counterparts as investors bet Latin America’s second-largest economy is better prepared to weather a global slowdown.
The 27-basis point drop in Mexican government dollar bond yields in the past month compares with a decline of 25 for Brazilian notes, snapping five straight months of underperformance, according to JPMorgan Chase & Co. The two- basis point increase in Mexican corporate borrowing costs in the past month compares with a jump of six basis points, or 0.06 percentage point, for their Brazilian peers. Previously, Brazilian corporate securities had outperformed for two consecutive months.
President Felipe Calderon’s administration has lined up a $72 billion credit line from the International Monetary Fund, extended debt maturities and shunned capital increases embraced by Brazil, the region’s largest economy, to protect against a slowdown in the U.S., which buys 80 percent of the Latin American nation’s exports.
“They are strengthening public finances here in Mexico,” Gabriel Casillas, chief Mexico economist for JPMorgan Chase & Co. in Mexico City, said in a telephone interview. “The Mexican market has become much easier and flexible to trade as Brazil boosts capital controls.”
Read full article...
www.bloomberg.com/news/2011-08-11/beating-brazil-bonds-shows-how-calderon-prepared-after-2008-mexico-credit.html
Mexico's President Felipe Calderon. Photographer: Chris Goodney/Bloomberg.
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