Bancomer Bonds Missing Rally Signals Buy to ING: Mexico Credit
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Concern that Grupo Financiero BBVA Bancomer SA may turn over cash to its Spanish parent has sparked a sell-off in the lender’s bonds that’s making them attractive to ING Groep NV and Aberdeen Asset Management Plc.
Yields on the Mexico City-based bank’s $1 billion of bonds due in 2020 have risen 31 basis points, or 0.31 percentage point, this year to 6.65 percent yesterday, according to data compiled by Bloomberg. The average borrowing costs for Latin American banks dropped 27 basis points during the same period to 5.58 percent, Credit Suisse Group AG indexes show.