In this document, we outline our sector-by-sector credit perspectives, highlighting the corporate issuers under our active coverage where we identify the most compelling opportunities in terms of relative value and fundamental strength. For each sector, we flag the names that, in our view, offer the most attractive risk-adjusted returns within the current rates environment. Additionally, we provide a company-by-company review based on 2Q25 earnings results, focusing on key credit metrics and operational trends. This comprehensive assessment supports our current positioning and trade ideas within the MXN corporate bond space.
Over the past seven months, the local corporate bond market (MXN-denominated) has experienced a notable rebound in issuance activity, supported by favourable carry dynamics. Issuers have capitalised on this environment by front-loading refinancing and opportunistically extending maturities, particularly those with upcoming 2026-2027 bullet payments. Despite global volatility, the local market remains well-functioning, with credit spreads exhibiting moderate dispersion, allowing well-rated corporates to maintain access under attractive terms, while names with weaker credit profiles face wider pricing and more scrutiny on execution risk.
Given the prevailing fixed-rate environment and elevated real yields, we remain constructive on MXN-denominated corporate bonds, particularly those offering coupons above 10% and moderate duration exposure. Our strategy focuses on short-to-intermediate maturities (below 6 years), targeting credits that offer a compelling balance of carry and credit quality, with upside potential if local rates normalise in the medium term.
We favour names like CFE 8.18% 27, which we continue to overweight until it converges to par, supported by its quasi-sovereign profile and AAA local ratings across agencies. We also highlight VWLEASE 11.03% 29, a high-quality corporate with AAA.mx by Moody’s, and FUNO 11.36% 32, an IG-rated REIT. For exposure to industrials and cyclical recovery themes, CEMEX 11.48% 30 stands out with one of the most attractive coupons in the market and solid fundamentals (AA+(mex) by Fitch). ORBIA 10.63% 32, despite facing competitive pressures from Asian peers, maintains a conservative credit posture and a strong cushion over its debt obligations.
TOYOTA 10.66% 28 presents a rare opportunity to gain high carry with a top-tier corporate credit profile. Meanwhile, GAP 9.65% 30 and OMA 9.35% 29 offer a way to monetise the upcoming tailwinds from air traffic growth, including the FIFA World Cup 2026, while remaining within the high-grade spectrum. On the structured credit side, VIVAACB T+220 27 continues to demonstrate strong debt service cover ratio (DSCR) stability, making it an appealing name in ABS territory.