Supply shortage hits bond investors



Mexico has come a long way since the 'Tequila Crisis' of 1994-95, when a sudden devaluation in the peso spelled disaster for the recently privatised banking sector. The recapitalisation of the sector has been achieved by allowing foreign players to buy up or take stakes in Mexican banks. This economic liberalisation has led to a period of impressive financial stability and capital markets growth.

Initial fears that the new government of President Felipe Calderon would face a constitutional crisis

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