Economics
Love of Coke Persists After Mexico Tax in Boon for Bond Traders
- Mexico purchases of Coca-Cola Femsa sodas post rebound in 2015
- Company's bonds sidestep selloff in emerging-market debt
This article is for subscribers only.
Mexico’s two-year-old tax on junk food is failing to dent its citizens’ love of sugary drinks, and that’s good news for bond investors in Coke bottler Coca-Cola Femsa SAB.
The company is sidestepping a rout in global debt markets after reporting a rebound in purchases of soft-drinks in 2015 that erased the drop it suffered a year earlier, when the levy took effect. Latin America’s largest Coke bottler has seen its $3 billion of notes gain 1.6 percent this month, versus an average loss of 1.7 percent for emerging-market bonds.