Published On: September 17th, 2021Categories: Trade Ideas
We first issued a note at the beginning of March when the Mexican government reaffirmed its willingness to support the oil giant through capital injections and tax relief. We highlighted the shortest dated maturities as a good spot to take exposure on the name. What should investors do now? AMLO’s government reiterated its willingness to help repay Pemex debt until the end of this administration’s term in 2024. In a context of continuing strong support, we should see Pemex bond spreads trading closer to the regional peers Petrobras and Ecopetrol.