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Yield Hunters Sought for Mexico Mortgage Investment IPO

A Mexican mortgage trust, looking to close the country’s largest initial public offering in over a year, is hoping to compel investors to buy its shares with one thing: yield, and lots of it.

Concentradora Hipotecaria SAPI, which is seeking to raise as much as 9.6 billion pesos ($706 million) from its IPO today, has spelled out a plan to deliver dividend yields of 14 percent to prospective investors. That’s better than the dividend projections of 36 of 38 global mortgage REITs, and more than twice the yield on 10-year fixed-rate Mexican bonds, according to data compiled by Bloomberg.