The recent performance of the Mexican stock exchange has boosted the issuance of products featuring the Mexican Bolsa IPC index in the domestic retail market.
SRP data shows that in August sales of products linked to this underlying increased by 179% following the launch of 11 equity-linked structured bonds linked to the local index which sold MXN1.36bn ($102m). This compares to two products worth MXN179m ($13.53m) issued in July.
The percentage of sales linked to the Mexican Bolsa IPC single index-linked structured products has increased since 2013 when sales amounted to $1.54bn across 22 products. The index has become the second best-known and best-selling index underlying behind the Eurostoxx50 in Mexico.
In 2013, sales dropped slightly from 2012 to 7% of all Mexican sales volume. Year to date, BBVA Bancomer has been the most active issuer of Mexican Bolsa IPC-linked products with 13 single-index-linked products, followed by Banamex with eight products, Actinver with seven, Scotiabank Inverlat with four and Monex with three products.
During the first eight months of 2014, the MXN/USD exchange rate dominated the market despite the Eurostoxx50 becoming the second most popular underlying by sales volume, with sales of nearly MXN8.19bn ($619m) across 36 structured products.
Mexican Bolsa IPC-linked products came in as the third most popular, with MXN3.19bn ($241m) in sales across 29 products.
The Mexican Bolsa IPC index closed at an all-time high, reaching 46,313.40 points, on Thursday September 4.
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