Mexico is on the verge of overtaking Chile as the safest destination for bond investors in Latin America.
It cost 0.03 percentage point more this week to protect Mexico’s bonds against default than debt from Chile, which is rated four levels higher at AA- by Standard & Poor’s. The premium is now the smallest in CMA Ltd. data going back a decade and down from a record 2.94 percentage points in 2008.
Mexico’s sweeping constitutional laws that jettisoned its 75-year state oil monopoly and boosted tax revenue are helping to close the gap with Chile . . .
