Mexico sold $1 billion of bonds due in 100 years in the longest-maturity debt issued by a Latin American country. The government, which doubled the size of the sale from $500 million, sold the bonds to yield 6.1 percent, according to data compiled by Bloomberg. Deutsche Bank AG and Goldman Sachs Group Inc. arranged the sale.
Mexico’s 100-year bond sale is “evidence of how extraordinary the demand for yield has become,” Peter Boockvar, equity strategist at Miller Tabak & Co. in New York, said in a note to clients.
Um, no. The 100 year bond sale is evidence of financial lunacy. With all due respect to the UMS, investors here must be loco.
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
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