The Mexican government termed out its domestic debt last week with the inaugural issue of a 20-year fixed-rate treasury. Despite a timid debut at Ps1 billion (US$90 million), the deal rippled into every corner of the structured market. "It's a huge step," said Rogelio Arguelles, senior director at Fitch Ratings in Mexico. "The main beneficiaries are [originators] who want to borrow for the long term."
By adding a decade to its existing fixed-rate curve, the government set the foundation for a lengthy benchmark. Those that stand to gain are infrastructure projects, sub-national credits and housing finance companies - basically, all the main players of the structured arena.