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Pimco Love Affair Repels Pensions as Mexico Allure Fades

Bill Gross’s embrace of the Mexican bond market is repelling the nation’s pension funds.

Known locally as Afores, their share of Mexico’s government debt fell to a 12-year low of 18 percent this month. The funds are allocating less money to Mexican peso notes as unprecedented investment by foreign investors, including Gross’s Pacific Investment Management Co., triggered a rally that cut yields on debt due in 2024 to a record low of 5.1 percent in July.