Capital Markets
From The Report: Mexico 2017
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Mexico’s capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly among leading parastatal companies, such as the state-owned energy giant Petróleos Mexicanos and the Federal Electricity Commission, as well blue-chip private firms. In light of external and domestic economic and political uncertainties, as well as rising interest levels, the Mexican equity market is expected to tread water in 2017. With the introduction of two new financial products aimed at stimulating infrastructure investment in 2016, namely FIBRA E and CerPIs, 2017 will prove a litmus test of their capacity to impact Mexico’s capital markets in the way that FIBRAs and CKDs have in recent years. Overall, however, the capital markets are likely to continue to see positive growth in the years ahead. This chapter includes an interview with Carlos Rojo Macedo, CEO, Grupo Financiero Interacciones.

Articles from this Chapter

Overview

Hard at work: A range of options makes for attractive investment opportunities
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The Mexican peso is the second most actively traded emerging market currency, after the Chinese yuan, signalling a strong investment vehicle for the county’s assets. Its capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly…

Analysis

To market, to market: A new bourse will offer more options and a deeper market
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With listings, market capitalisation and liquidity in Mexico far below what would be expected in an economy of its size and development, financial market services firm Central de Corretajes (CENCOR) spotted a market opportunity and has been working to set up a second bourse to operate alongside the long-established Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV). Since 2013, CENCOR has been in close consultation with the regulator, the National Securities and Banking Commission (Comisión…

Interview

Partnering with states: Carlos Rojo Macedo, CEO, Grupo Financiero Interacciones, on the growth of public-private partnerships (PPPs)
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Interview:Carlos Rojo Macedo What is the purpose of the Financial Discipline Law, and how will it affect public and private actors? CARLOS ROJO MACEDO: The objective of the Financial Discipline Law is to assure that the country’s states seek their development based on a foundation of sustainable finance and financial responsibility over the medium and long term within the framework of an orderly process of laying out contracts and transparency in the publication of public finances. This…

Analysis

Exchange offerings: Stock market
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From primary public and debt offerings to more sophisticated instruments, the various financing options on the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) are diverse. Many of the BMV’s offerings are a sound option for obtaining financing. As the stock market allows individuals and organisations to multiply their savings through the contribution of capital to finance a wide array of development projects, both companies and the government in Mexico use this tool. All securities and…

Analysis

Planning ahead: Retirement & pension funds
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Pensions and their equitable distribution have been relevant for many years in countries around the world. In Mexico the pension system consists of four components: federal and state social pensions, the Retirement Savings System (Sistema de Ahorro para el Retiro, SAR); special pensions for some public employees and universities; and voluntary individual pension plans. Recent Reform Until the mid-1990s, the country had a traditional defined-benefits pension system, which was administered by the…

Analysis

Building funds: Infrastructure bonds
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Private equity in Mexico has achieved over $42.5bn in capital commitments over the past 16 years, expanding at a compound annual growth rate of 20.27%. In 2016 nine development capital certificates ( certificados de capital de desarrollo, CKDs) were issued, three of which were for infrastructure and energy, two for real estate, one for venture capital and three for private equity. Additionally, the newly introduced real estate investment trusts (fideicomiso de inversión y bienes raíces, FIBRAs)…