Capital Markets
From The Report: Mexico 2019
View in Online Reader

After several years of innovation – notably the advent of new investment vehicles and the arrival of a second bourse – alongside the change in government at the end of 2018, the coming years are likely to be characterised by consolidation. Domestically, uncertainty around sectoral policies – specifically in energy, infrastructure and banking – of the administration of President Andrés Manuel López Obrador may introduce periodic volatility in the securities of those sectors. Despite the many strengths of Mexico’s capital markets, subdued economic activity and falling inflation open the possibility for the central bank to ease interest rates in 2020. This chapter contains an interview with José-Oriol Bosch Par, CEO, Mexican Stock Exchange.

Articles from this Chapter

Overview

Strong and stable: An environment of innovation continues to bring depth and breadth to the country’s stock exchanges
OBG
plus

A free-floating currency, a large and diversified economy, the absence of capital controls and an increasingly attractive tax regime continue to make Mexico one of the stars of emerging market portfolio investment. The Mexican peso remains the second-most widely traded emerging market currency after the Chinese yuan, and is often treated by investors as a proxy for emerging market sentiment more broadly. The country’s capital markets are sophisticated and highly regulated, and the advent of new…

Interview

Making change: José-Oriol Bosch Par, CEO, Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV), on instruments and strategies used to shore up capital markets
OBG
plus

Interview:José-Oriol Bosch Par What strategies are being employed to increase foreign investment and financial inclusion? JOSÉ-ORIOL BOSCH: In January 2019 the government signed a decree that aims to boost the stock market and financial institutions for the benefit of entrepreneurs. The decree is focused on bringing young people into the financial services sector, encouraging share listing and promoting digitalisation of the banking sector through mobile technology. We are currently observing…

Analysis

Going for green: Mexico is a leader in issuing green bonds for environmentally sustainable projects
OBG
plus

In an era where businesses and governments worldwide are working to combat the effects of climate change, green bonds have become popular as a capital market instrument. Structured much like any other corporate or sovereign bond, funds raised through a green bond are dedicated exclusively to investment projects with little environmental impact, or to those that seek to prevent or reverse negative environmental effects. “There is a strong trend driven by development and commercial banks, real estate…

Overview

Mexico: Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture
OBG
plus

The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. In the new environment of higher interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they place their money. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion in such indices requires specific standards that indicate that the participating countries apply certain…