Mexico 100-Year Bond Raises Concern of Market Bubble

Mexico’s $1 billion sale of bonds due in 100 years raises concern the credit market is a approaching a “bubble” that’s blinding investors from making wise choices, RBC Capital Markets said in a report today.

“The market overlooks fundamentals at its peril,” RBC analysts Roger Appleyard and Simon Ballard wrote in a note titled “I’m Forever Blowing Bubbles.” “Enjoy the party while it lasts, but caveat emptor; the music will surely stop at some stage and when the party ends, the hangovers could be extreme.”