Urbi’s Greek-Like Distress Captivating Greylock: Mexico Credit
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The rout in Mexican homebuilder bonds is luring distressed-debt investors including Greylock Capital Management who say the yields on the securities are too attractive to pass up.
Urbi Desarrollos Urbanos SAB’s $300 million of dollar notes due in 2020 have plummeted 11 cents to 82 cents on the dollar in the past month, helping make homebuilder debt the worst-performing securities in Mexico. At 13.6 percent, Urbi’s bonds yield 12.16 percentage points more than similar-maturity U.S. Treasuries, meaning they’re considered distressed.