With no sign that generous volumes and compressed yields are easing up in Mexico’s domestic market, institutional investors seem to have a nearly boundless appetite for structured product. And now the market’s little guys are joining the feast.
A good 20% of a bulging deal from the Mexican state of Veracruz landed in the hands of retail investors, according to Pablo Pena, head of investment banking at Vector, which was a joint-placement agent on the deal with Banorte. Sized at 1.38 billion inflation-indexed units (UDIs) ($468 million), the 30-year final transaction priced at a real yield of 5.32%. Pena added that the retail investors didn’t appear to have much difficulty understanding the transaction, which was backed by vehicle taxes.
