Skip to content
Subscriber Only
Markets

Pemex Forced Sell-Off Makes Bonds Low-Hanging Fruit

  • Pemex bonds have fallen 30% this year as oil prices plunge
  • Investors see possible buying window after second junk rating
Octavio Romero Oropeza, chief executive officer of Petroleos Mexicanos (PEMEX), speaks while Andres Manuel Lopez Obrador, Mexico’s president, right, listens during a news conference at the National Palace in Mexico City, Mexico, on Tuesday, Jan. 7, 2020.
Octavio Romero Oropeza, chief executive officer of Petroleos Mexicanos (PEMEX), speaks while Andres Manuel Lopez Obrador, Mexico’s president, right, listens during a news conference at the National Palace in Mexico City, Mexico, on Tuesday, Jan. 7, 2020.Photographer: Alejandro Cegarra/Bloomberg
Updated on

There’s little going right for Mexico’s state oil giant Petroleos Mexicanos which has been hit by a collapse in global crude prices and a second downgrade into junk that is forcing certain investors to dump their bonds.

Pemex debt has lost almost a third of its value since the start of the year. Yet some fund managers say the time to buy may be near.