Relaxed regulations and an innovative new hybrid product
have opened up investment options for Mexican pension funds
(Afores), explained Jean Michel Enriquez of Creel
Garcia-Cuéllar, Aiza y Enríquez at a session on
new capital markets products yesterday afternoon.
Pioneered in late 2007, before the global financial crisis,
the structured notes pay both a principal guaranteed amount,
plus a coupon linked to the EBITDA and performance of the
underlying asset. But largely due to suspicion of equity risk
among investors, the product failed to take off before
liquidity was squeezed, and...