In today’s briefing:
- Pemex: Lack of Concrete Action Weights on the Outperform Thesis
- EM Spreads – Weekly News & Views
Pemex: Lack of Concrete Action Weights on the Outperform Thesis
- We need to see concrete action from the Mexican government to maintain an Outperform recommendation.
- Pemex’s deteriorating operational metrics will likely increase its need for government assistance.
- Within Pemex’s capital structure, we continue to prefer the PEMEX (B3/BBB/B+) 5.950% 2031, the PEMEX 6.625% 2035, the PEMEX 6.625% 2038, and the PEMEX 7.690% 2050.
EM Spreads – Weekly News & Views
- The LatAm Corporate Index tightened by 12 basis points (bps) to 306 bps in the week ending on Friday, January 31, 2025.
- U.S. Treasuries saw decreases, with the 10-year yield down 11 bps to 4.51% and the 5-year yield also down 11 bps to 4.31%.
- We initiated coverage on Suzano with a Market Perform outlook, Sheinbaum unveiled an energy reform, YPF completed its $327 million acquisition of Mobil, and Cemex finalized its $950 million divestment.
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