Mexico global bonds jump on exchange warrant plan
Prices on longer-maturity Mexican global dollar bonds soared on Thursday as the government announced it was offering warrants allowing holders to exchange them for domestic peso-denominated paper.
“Mexico has just announced an offering of three series of warrants that would allow their holders to exchange a specified face amount of external bonds for an amount fixed in U.S. dollars of a peso-denominated Bono on the expiration date,” Barclays Capital said in a research note.
“It’s going ahead today,” a spokeswoman at Mexico’s finance ministry said when asked if the warrants would be offered on Thursday but declined to give further details.
The biggest jump was in the UMS-19, which rose 4.250 to bid 123.750. The UMS-31 rose 2.000 to bid 124.000, while the UMS-26 rose 1.750 to bid 160.00.
More: today.reuters.com
Mexico to Swap Bonds Today to Lower Foreign Debt
Mexico will swap foreign-currency bonds for domestic securities today, the first part of a planned $3.3 billion exchange aimed at making the countrys finances less vulnerable to declines in the peso.
In todays transaction, investors can turn in as much as $500 million of dollar bonds in exchange for peso debt. Investors in November bought warrants from the government that gave them the option to turn in their dollar bonds for peso bonds. In March, the government sold similar warrants to holders of some bonds denominated in European currencies.
The swaps
Mexico Sells Warrants to Swap $2.5 Billion of Bonds
Mexico sold securities that allow investors to swap about $2.5 billion of the nation's dollar- denominated bonds for peso debt next year, a person familiar with the offering said.
Investors paid $65 million for warrants that can be turned in along with Mexican dollar bonds that mature between 2007 and 2033 in exchange for peso securities due in 2011, 2014 and 2024, the person said.
The sale is part of a government effort to shift more of its financing to the domestic market, helping reduce its vulnerability to declines in the
Mexico's Televisa replaces $600 mln in debt
Mexico's No. 1 broadcaster Televisa said on Wednesday it had successfully replaced $600 million in existing debt with identical new paper in a technical operation to comply with U.S. market regulations.
Televisa (TLVSCPO.MX: Quote, Profile, Research) (TV.N: Quote, Profile, Research) said its month-long offer to exchange debt with a coupon of 6.625 percent and maturing in 2025 for identical new paper closed on Tuesday.
"The total amount of old debt was exchanged for new bonds, corresponding to $600 million in new bonds issued today, September 7, 2005," Televisa said.
The operation was a purely technical one
Emerging debt-Prices rally on Treasuries; Mexico leads
Emerging market debt prices rallied on Friday, boosted by U.S. Treasuries and led by Mexico, where the government announced its second step this week to reduce its outstanding foreign debt.
Mexican external bonds, which usually move in relatively narrow ranges compared with other major EM credits, roared higher. The benchmark global bond due in 203, jumped 2.500 points to bid 124.50 and the global 2019 rose 4.250 to bid 123.750.
Analysts said the surge was driven by the view that debt will become more valuable as it dwindles in supply.
"It was a Mexico colored day," said
Mexico, Argentina, Venezuela: Latin America Local Bond Preview
The following events and economic reports may influence trading in Latin American local-currency bonds today. Bond yields are from the previous session.
Argentina {ARGENT }: Argentina's central bank plans to step up oversight over foreign-exchange trading, seeking to block bond trades that are used to make illegal foreign- currency transfers, the bank said in an e-mailed statement yesterday. The bank said it had detected alleged violations of exchange control regulations through simultaneous purchases and sales of bonds in Argentina and abroad. Analysts such as Rafael Ber at Argentine Research say the
GLOBAL MARKETS-Safe haven assets rally on quake off Mexico coast
Reports of an earthquake in Mexico's Gulf of California boosted demand for safe-haven government bonds on Wednesday, lifting U.S, euro zone bond futures and the Swiss franc sharply higher.
The Gulf of California is a body of water that separates the Baja California Peninsula from the northern Mexican mainland.
March Bund futures hit a session high of 121.97 coming within a whisker of a nine-week peak as news filtered through the markets boosting demand for risk-free assets.
"There's talk of an earthquake in the Gulf of California. This is pushing bonds up," said David
Mexicos Urbi sells $150 mln in 10-yr bonds
Mexican homebuilder Urbi (URBI.MX: Quote, Profile, Research) on Monday said it has placed $150 million in 10-year senior bonds in the U.S. market.
Urbi, one of Mexicos largest house construction firms, said it planned to use proceeds from the 8.5 percent, 2016 maturing bond to refinance debt and fund other corporate activities.
The bonds, offered to institutional investors in the United States and other countries, have been rated BB by Standard and Poors and Fitch ratings and BA3 by Moodys.
More: today.reuters.com
Peru Bonds Outperform Mexico's Debt on Growth, Slower Inflation
Peru's dollar-denominated bonds are outperforming emerging market debt sold by countries including Mexico as four years of economic growth and record low inflation lure investors.
Putman Investments and Standish Mellon Asset Management Co. are among investors buying Peru's bonds, betting the nation's credit ratings will rise. President Alejandro Toledo has helped spur 48 straight months of economic expansion, the second-best performance in Latin America, and cut the inflation rate to a three-year low of 1.2 percent. Surging exports of gold and copper are buoying growth in a country where mining and
Belize and Mexico talk border security issues
Diplomatic ties between Belize and Mexico are strengthened tonight thanks to a bi-lateral programme designed to curb illegal activities in border areas. News Fives Janelle Chanona has the details.
Janelle Chanona, Reporting
Today more than forty Mexican and Belizean law enforcement officials met in the old capital for a round of technical talks on national security strategies.
Gerald Westby, Police Commissioner, Belize
We have a memorandum of understanding that directs this action plan. Once we have set out this action plan, we have a timetable. Well place a timetable on the action plan and well start to work
Bond Strategists: Julius Baer's Owens Says Sell Mexico on Rally
Investors should sell Mexican government bonds because their prices already reflect chances the central bank will cut interest rates twice more this year, said Adrian Owens, a director of fixed income at Bank Julius Baer.
``The inflation outlook for Mexico is encouraging and the central bank will continue to cut interest rates, but most of that good news is already priced into the market,'' Owens, who co- manages the firm's $157 million Global Rates hedge fund, said in a Sept. 29 interview. ``The best bet is to trim your Mexican
