More than 60% of investors anticipate that Mexico will lose investment grade: Bank of America survey


According to the latest monthly survey that BofA applies among its clients around the world, the biggest “fail risk” in Mexico remains the government’s decisions.

The proportion of investors who anticipate that Mexico will lose the degree of investment in the next six months is reduced to 64% . This proportion is lower than the peak reached last month, when 73% considered the degradation of the sovereign note at the level of speculative bond viable.

According to the latest monthly survey that BofA applies among its clients around the world , the biggest “tail risk” in Mexico remains “the government’s decisions”, with 52% of the responses. This factor has led the list of risks since the first time they included the option in the questionnaire, in November 2018.

In the opinion exercise conducted by BofA-MLynch each month, it is observed that the number of fund managers who see the internal decisions of the government as the highest risk, exceeds the 32% that this feeling had in May, and that of December is the third highest proportion recorded since February of this year, when 77% saw it as also the greatest danger.

The second highest risk identified by investors for Mexico in the survey is the slowdown in the United States, as noted by 25% of the fund managers consulted.

In the same survey, they asked managers what will be Mexico’s most attractive asset for the next six months. Local assets dominate, with 60% of opinions in favor; followed by the stock market, with 19% of the responses, and those set in Mexican pesos.

The survey was conducted in the first days of December, this means that the responses include the results of the timely estimate of GDP in the third quarter , which was close to zero again.

In total, there were 25 fund managers consulted that manage about 64,000 million dollars around the world.

Source: el economista

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