Mexico’s markets stand out from global economic turmoil

Mexico virtually single-handedly kept Latin America’s capital markets afloat last year.
Mexico virtually single-handedly kept Latin America’s capital markets afloat last year.

By Jude Webber in Mexico and Pan Yuk in New York / Financial Times

Amid global stock sell-offs, crashing oil prices and rampant capital flight, one emerging market is still standing: Mexico.

So far this month, Mexico has already seen its first initial public offering, the only one to date from Latin America, as well as selling a $2.25 billion sovereign bond that garnered unprecedented demand for 10-year government paper.

“Mexico separates itself from other emerging markets, even more so in the current macroeconomic environment,” said Armando Senra, head of Latin America and Iberia at the world’s biggest money manager, BlackRock. “Where else can capital go? . . . Mexico is a bright spot,” he said.

BlackRock has billions under management in Mexico — it does not disclose the level publicly — and has been positioning itself as a major infrastructure investor, so its optimism about Latin America’s number two economy is understandable.

But Mexico virtually single-handedly kept Latin America’s capital markets afloat last year, with more debt and equity market issues than anywhere in the region. It has wasted no time this year proving that investors still find its assets attractive.

http://www.ft.com/intl/cms/s/0/fa8c4c12-c054-11e5-a8c6-deeeb63d6d4b.html#axzz3yGzpjpmt

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