Concern that Grupo Financiero BBVA Bancomer SA may turn over cash to its Spanish parent has sparked a sell-off in the lender’s bonds that’s making them attractive to ING Groep NV and Aberdeen Asset Management Plc.
BBVA Bancomer, the largest holder of Mexican government peso bonds, plans to buy inflation-linked debt as a bet consumer price increases will quicken beyond forecasts after slowing to a five-year low.
Banks in Mexico are increasing peso bond sales at the fastest pace in nine years to finance loans as the U.S. recovery bolsters growth in Latin America’s second- largest economy.
U.S. retail sales probably increased in April after posting the largest monthly gain since September 2012, data in the coming week may show.
Megacable Holdings SAB , Mexico’s biggest cable-TV provider, fell the most in three months in Mexico City trading after BBVA Bancomer SA said investors should bet against the shares.
Even with Wall Street’s help, Mexico is struggling to lure investors to its local-currency bonds as speculation the Federal Reserve will curb stimulus sparks an exodus from emerging markets.