Nearly four years ago, MBIA hit Mexico's peso market, the first monoline to do so. It gave extra vroom to a toll road deal, which priced tighter than any domestic triple-A corporate or ABS before it. The message was clear. Mexican buysiders liked a good wrap.

But they had a first love: government paper. The wrap was attractive, yes, but not enough to wreck such a solid relationship. It turned out that the toll road deal priced wide of Mexican treasurys, paying bondholders an extra 24 basis points over, even though government bonds were effectively rated at the Mexican sovereign, quite a distance from the wrap's global triple-A.

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