The victory of Andrés Manuel López Obrador (Amlo) in Mexico’s presidential elections may not have been the markets’ preferred outcome, but at least the arrival of clarity has led to a positive investment narrative.
Amlo’s resounding victory should give him legislative flexibility, while his conciliatory messages to the markets immediately after the election – in contrast to the bellicose messages during the campaign – have also settled nerves. Throw in the much-reduced risk around the collapse of the North American Free Trade Agreement (Nafta) and many of the ingredients for a recovery in deal activity are in place.
Only the general and global jitters around emerging markets – sparked by Turkey but that also highlight other countries’ structural and political weaknesses – could limit the capacity of the recovery, Mexican-based bankers say.
‘Recovery’ may be too strong a word: debt capital markets activity from Mexican issuers has been resilient so far in 2018....
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
