May 06, 2019 | Cbonds
|We are pleased to announce that Cbonds is expanding the coverage of international markets. Mexican domestic corporate bonds have been added to the database. 879 issues of the Mexican domestic corporate bonds are available at the Cbonds website, with 772 issues outstanding. |
Bond Market Profile
The average maturity period of the Mexican domestic corporate bonds is 12 years. More than 60% of the total volume of the corporate bond market is issued with a floating rate, mainly Interbank Equilibrium Interest Rate (TIIE) of different maturity. An example of this issue is ABC Aerolineas, FRN 11aug2022, MXN (14). The main currency of the issue is MXP (86.16%), however part of the issues (12.28%) is represented in UDI (national statistical unit linked to inflation rates). Issue in this currency guarantees the protection of investments from inflation processes, which increases their investment appeal. For example, Comision Federal de Electricidad, 4.54% 30sep2032, UDI (17U).
The main borrowers at the corporate bond market are government agencies and representatives of the financial sector (38.47% and 37.93% of the total market volume, respectively). The most active market participants are IPAB (Mexican Deposit Insurance Agency), CIBanco and Pemex (the largest Mexican national oil and gas company).
Until July 2018, the only stock exchange in Mexico was Bolsa Mexicana de Valores (BMV), the capitalization of which was over USD 412 billion in January 2019. On the 25th of July last year, the 43-year period of the BMV monopoly ended, once a new trading platform named Bolsa Institucional de Valores (BYVA) was launched. The purpose of the exchange is to provide access to capital markets for medium and small companies. BYVA has a similar set of financial instruments as BMV, namely: shares, fixed income instruments and units of real estate investment trusts (REIT). However, the bulk of the transactions (99.25% according to the results of 2018) is still entered into at BMV. Notwithstanding the active work on the development of the financial market infrastructure, 2018 turned out to be a difficult year for the Mexican stock market: the main stock index of the Mexican IPC exchange for the year dropped by 15.63%, hitting the low since 2000. In addition, from July to September 2018 the largest outflow of foreign capital from the end of 2015 was registered – USD 528 million.
Subject to the IMF data, as of April 2019, Mexico was the 15th largest country in the world in terms of GDP and second only to Brazil in terms of GDP among the Latin American countries. Despite the fact that Mexico occupies a leading position by level of development among the emerging markets, the global economic crisis has affected its economy. Based on the results of 2018, the economic growth rate was 1.6% (in 2017 – 2%) and, according to numerous forecasts, will not exceed 2% in 2019. At the end of 2018, the inflation rate was 4.83%, while the target set by the Central Bank of Mexico two years ago was the inflation rate of 3%.
The main threats to the Mexican economy are tension in the trade relations with the United States and slowdown in oil production, the export of which is the main source of income for the Mexican budget.
Deterioration of key economic indicators is also reflected in the growth of five-year CDS spreads by the end of 2018.
Traditionally, daily quotes, bond calculator, basic parameters of placements, cash flow and issue documents are available for all the issues. Please note that access to these data is included in the Cbonds-Premium tariff. If you have not gained access to the website yet, you can use all the features by applying for trial access. Information is available in eight languages: Russian, English, Italian, German, Spanish, Polish, Chinese and Ukrainian.
Company: Cbonds Group
|Full company name||Cbonds Ltd|
|Country of risk||Russia|
|Industry||Information and High Technologies|