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 IDEAGlobal emerging market analyst Enrique Alvarez. “The announcement today of Mexico’s warrants offer to exchange globals for local debt came on top of the the other earlier in the week.”
He was referring to Tuesday’s Mexico announcement that over the past month it had bought back $1.4 billion in external debt as part of its effort to reduce its international debt burden.
More: today.reuters.com
Mexico Bonds May Extend Rally as Oil Prices Gain, Rating Rises
Mexico's U.S. dollar-denominated bonds may extend a 3 1/2-month rally as the country benefits from record oil prices and improving credit quality.
``We're more optimistic on Mexico relative to the market as a whole,'' said Christian Stracke, an emerging-market debt strategist at New York-based CreditSights Inc. ``The emerging- markets sector as a whole is overbought and we've seen it starting to pull back a bit. As the market pulls back, safer credits like Mexico tend to outperform.''
Record oil prices helped Mexico, the world's fifth-largest oil producer, boost international reserves
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
Mexico's Bolsa Has Third-Straight Yearly Gain: Latin Stocks
Mexico's Bolsa fell on the last trading day of 2005 as the index approached its third straight annual gain.
America Movil SA, up 60 percent this year, and Cemex SA, up 55.9 percent, led declines today as investors sold to take advantage of the rally.
The Bolsa fell 130.58, or 0.7 percent, to 17,702.22. The drop follows a year-end rally that began on Dec. 9, the day Mexico's central bank cut its benchmark lending rate more than expected to 8.25 percent. The cut followed a government report that showed the annual inflation rate
Mexico's Fox Seeks to Use Oil Revenue to Cut International Debt
Mexican President Vicente Fox's proposed spending plan for 2006 seeks to use revenue from record high oil prices to reduce the nation's international debt to its lowest in more than three decades.
``High oil revenue has a non-recurring nature, so we must use it to strengthen our infrastructure or save it to mitigate the impact of a possible decline in oil prices on public finances and the national economy,'' Fox, 63, said in a message to legislators in the budget.
Fox's plan would allow Mexico, the world's sixth-largest oil
Mexico's Ortiz Says Market `Correction Is Healthy'
Mexican Central Bank Governor Guillermo Ortiz described this week's decline in emerging market bonds and currencies as a ``healthy correction.''
``The markets can't always be going in only one direction,'' Ortiz told reporters after speaking at a conference on competitiveness in Mexico City today. ``It's healthy that there are corrections.''
Mexico's currency slipped 2.7 percent against the dollar in the last five days to 10.7675 pesos, its weakest level since Dec. 28, from 10.4753 pesos. Mexico's benchmark stock index fell 345.46, or 1.9 percent, to 18,205.61 as of 2:11 p.m. New York time
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
Merrill Lynch opens Grupo Mexico cover with "buy"
Merrill Lynch began coverage of Mexican copper giant Grupo Mexico with a "buy" rating on Tuesday, pointing to strong prices, a debt restructuring and improvements in returning cash to shareholders.
Merrill Lynch set its 12-month price target for Grupo Mexico at 26 pesos per share. They were trading on Tuesday morning at 18.57 pesos, up 1.31 percent in the session.
Grupo Mexico has leveraged record metals prices to tidy up its finances, reducing net debt from $2.5 billion in December 2004 to $1.4 at the end of June.
Grupo Mexico is the world's No. 3 copper
Mexico Makes Good on Debt
The Mexican Treasury announces the country has paid off its $1.41 billion in foreign debt to salvage and maintain the country’s financial stability through next year's presidential elections.
Officials say Mexico paid off a portion of 10 bonds due between 2007 and 2033 using funding purchased from the central bank.
President Vicente Fox promises to cover financing needs through 2007 to protect the economy from the financial crises associated with earlier presidential transitions.
Morgan Stanley analyst Gordian Kemen says the announcement came as a surprise to many, but "is very positive.
The government still has $430 million more than what
Mexico's TV Azteca to prepay 1.4 bln pesos of debt
Mexico's No. 2 broadcaster TV Azteca said on Friday that this month it will prepay 1.406 billion pesos ($131 million) of debt with local bank Banco Inbursa that is due to expire in 2008.
Azteca (TVAZTCACPO.MX: Quote, Profile, Research)(TZA.N: Quote, Profile, Research), owned by media and retail magnate Ricardo Salinas, said it was funding the debt prepayment with the proceeds of a bond issue in Mexico. ($1 = 10.694 pesos)
More: today.reuters.com
Hirvonen confident for Mexico
Mikko Hirvonen says he is confident of securing a strong result as the World Rally Championship heads to Mexico next weekend for the third round of the year.
After the tarmac of Monte Carlo and the snow of Sweden, Rally Mexico will be the first gravel event on the 2006 calendar – and Hirvonens first gravel rally with the 2006 spec Ford Focus RS WRC06.
However, a two-day test session in Spain had left the Finnish driver confident of a strong performance in the event – which will be his first gravel outing since Rally Japan last season when
