- During 2023, the Mexican local corporate bond market saw a continuous growth in issuances. Companies like CEMEX returned to this market to issue debt. Bimbo and AMX registered the largest fixed-rate issuances in terms of amount. Currently, the total outstanding balance of corporate bonds issued by non-financial entities (NFCs) in Mexico amounts to MXN694bn (excluding state-owned enterprises).
- In 2024, we will see significant maturities in the local market from issuers such as CFE, MFRISCO, AMX, GAP, among others. Non-bank financial entities have maturities for MXN47,261mn in 2024. FEFA will be the main player in this section.
- Corporate bonds continue to offer yields higher than sovereign bonds. Spreads, for their part, continue to show movements, particularly in the consumer sector.
- Since the publication of our MXN Credit strategy (November 9th) to January 16, an annualized return of 18.65% was obtained according to the average effective yield of each bond in our selection. This surpasses the yield of the 3-year M Bond.
- In 2023, there were few issuances by Mexican companies in the international market. CEMEX and Pemex chose to issue in the USD credit market. Mexican NFC issuance is still low compared to Brazil.
- Finally, we present our view on the upcoming refinancings during 2024.