Mexico's Credit Risk Is the Highest Since Trump's Inauguration
- Mexican credit-default swaps have soared ahead of election
- Leftist candidate enjoying a 26 percentage point lead in polls
Photographer: Andrew Harrer/Bloomberg
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Mexico’s credit risk is at the highest level since the days after Donald Trump’s inauguration.
Five-year credit-default swaps that hedge against a drop in the value of Mexico’s sovereign debt have soared as the July 1 presidential election nears. Leftist Andres Manuel Lopez Obrador holds a commanding lead in the polls, and traders are concerned his victory could upend the economy just as the country is roiled by increasing trade tensions with the U.S.