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Mexican markets boosted by Peña Nieto optimism

Thursday, July 19, 2012

Mexico has seen a burst of optimism since Enrique Peña Nieto's presidential election victory this month, as markets bet on an end to the stalemate over reforms and a reversal of the slow growth that has plagued the economy in recent years.

This is all potentially good news for local capital-market activity, as rates drop and corporate issuers seek funding for investments and to cover some $28 billion in bond maturities during 2013-16.

It may also be a boon for lower-grade borrowers who do not have ready access to local markets but may find a receptive audience in the dollar markets instead.

Source: Reuters