When Mexico issued its CAC-laden 12-year bond in
February, it didn't offer investors a choice: anybody wanting
new Mexican debt couldn't buy a bond without CACs instead. So
there's no way of knowing for sure whether or not Mexico paid
a premium for including CACs.
JPMorgan, Goldman Sachs, and Mexico itself all say that it did
not pay a premium. Mexico had issued a highly successful 10-year
bond in January, which was trading at about 275bp over the 10-year
Treasury when the 2015s priced.
At the time, the Treasury swap curve was...
