Jonathan Fortun · Martín Castellano · María Paola Figueroa / Institute of International Finance
Fiscal credibility shapes borrowing costs through different channels across Latin America. Jonathan Fortun, Martín Castellano and María Paola Figueroa contrast Brazil’s high domestic financing costs with Mexico’s sovereign repricing ahead of a rating downgrade. In Colombia, lower spreads already reflect expectations of political and fiscal improvement, leaving the country exposed if those expectations are not met. The comparison places institutional strength and credibility alongside debt levels when assessing sovereign risk.
Jonathan Fortun discusses the changing profile of investors in Mexican securities, the factors behind the peso's strength and investment decisions as global trade changes.
Fortun discusses the institutions and policy consistency that could sustain investor confidence in Mexico, including fiscal management, the central bank and Pemex.
In an interview after an IIF meeting, Fortun discusses the peso's offshore use, portfolio diversification and the institutions supporting investor confidence in Mexico.