Daily Brief Credit: Mexico Sovereign Debt: Investment Grade at a Discount and more - Smartkarma

Source: Smartkarma

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DW NOTE

Mexico's 10-year bonds yield 9.8% while carrying Baa ratings from Moody's and BBB+ from S&P — higher spreads than countries with objectively worse fiscal positions. The discount exists because investors price political noise louder than they price a 3.5% deficit, $200 billion in reserves, and debt-to-GDP below 60%. That mispricing won't last if the Fed ever cuts.

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