No More Bonds Is Winning Formula for Mexico’s Mexichem
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Mexichem SAB’s overseas sales and its pledge to cut debt are sheltering bondholders from a plunge in the petrochemicals maker’s home currency, the Mexican peso.
The company’s $750 million of bonds due in 2022 have returned 3.8 percent in the past six months, exceeding the average advance for debt issued by Mexican borrowers over the same span and triple the gain in emerging markets. The peso has weakened 12 percent during the period, eroding bond returns of companies with dollar-denominated debt and mostly local revenue.