Tracking Mexico's Diverse Bond Market with Alphacast

Tracking Mexico's Diverse Bond Market with Alphacast

By Martina Mas(

Read more Alphacast Highlights here

Multiplicity of Mexican bonds, such as UDIBONOS, Bonos G, CETES and Bonos D represent a crucial source of funding for the Mexican government's operations and provide an investment option that supports the country's economic growth while generating investment returns

In order to that, the Bank of Mexico (Banxico) plays a privoral role in collecting, analyzing, and synthesizing extensive data related to the diverse range of government securities held by different entities in the economy. Let us take a closer look at each of these instruments and the available information to analyze the bond´s market in Mexico.

Fixed-Income Securities

Bondes D, also known as Development Bonds of the Federal Government, are medium-term fixed-rate bonds issued by the government to finance development projects and social works in the country. All these instrument are issued in the Mexican market but denominated in US dollars.

Here our dataset Markets - Mexico - Banxico - Bondes D collects daily nominal stock data in millions of pesos. Stock values for different categories are provided like residents, banking sectors, investment funds, insurance and surety companies, and others. Also information is available for the last month and year, and there are repos and guarantees with Banxico as well.

As well, CETES are short-term Treasury Certificates issued by the Mexican government, which are considered safe and low-risk investments, offering a fixed rate of return. For these instruments, maturities range from 28 to 364 days. Indeed, CETES serve as a benchmark for interest rates in Mexico and are widely regarded as one of the safest financial instruments in the country.

Examine closely our Financial - Mexico - Banxico - Fixed Rate (Cetes) that collects all the information for each instrument published by Banxico.

Equity Bonds

On the flip side, Bondes G are medium-term bonds with a variable interest rate, aligned with Environmental, Social, and Corporate Governance criteria. Unlike Bondes D, Bondes G have a variable interest rate that adjusts based on inflation and market conditions. Furthermore, while the Bondes D are issued in US dollars, the Bondes G are denominated in Mexican pesos

The followng dataset Markets - Mexico - Banxico - Bondes G offers a comphrensive view of daily information for these type of instrument, including nominal stock and specifications for each investor type.

Inflation-Linked Securities

Alternatively, Udibonos are investment instruments issued in units of Investment (UDIs) that serve as a safeguard against the impact of inflation. Featuring a fixed interest rate, UNIBONDS provide an additional benefit by incorporating the daily inflation rate.

Check out more information avaiable on Markets - Mexico - Banxico - Udibonos. In a similar vein, the dataset is structured according to the investor type or sector.

Can Dataset Functions Furnish Data on Mexican Bonds?

Certainly, without a doubt. In Alphacast, users have the flexibility to customize their analysis by selecting their desired time frame, such as the current year, and investor categories like the banking sector. As a result data can be visualized through interactive graphs and generate up-to-date reports on fixed-income bond market developments just using the Generate AI Summary botton.

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Simplified Data Visualization through Pipelines

You can begin exploring Mexican bonds by using dataset functions to transform data or just by selecting pipelines in the Create New option that appears in the explore interface, which will allow you to delve into our powerful data transformation, processing and visualization tools.

We design for you the next examples. One may be analyzing the composition of the stocks value in pesos year after year for each type of fixed-rate securities, equity bonds, and inflation-adjusted bonds. Based on the charts below, we observe that the first group is primarily composed of investment funds, the banking sector and other residents. Conversely, the majority of investors seeking protection against inflation, as Udibonos does, are pension funds and other residents. Equity instruments, on the other hand, mainly consist of investment funds and repos with Banxico.

What's more, how does the ability to view a single series across multiple years within a unified graph facilitate the analysis of patterns and trends over time? With the Year comparison function when you go to customize a chart, this is possible in matter of seconds.

It is noteworthy that in the current year, the latest data indicates that CETES (Mexican Treasury Certificates) take the lead in terms of instruments as a percentage of GDP. This phenomenon due to the fact that they are widely favored by risk-averse investors who prioritize stability and capital preservation. Given their low-risk nature, CETES are perceived as a safe placein times of economic uncertainty. Furthermore, competitive interest rates are offered by CETES relative to other investment option.

Integrating Data's Never Been More Hassle-free

Furthermore, not only exploring each instrument but also heterogeneous data can be integrated by using pipelines. For comparing numerical data or metrics across sectors between more than one dataset, the Merge with Dataset function is the preferred course of action.

Try to analyze the joint dynamics of each Bondes G, Bondes D and even more so, inflation-adjusted bonds. As observed, the relatively lower participation of Bondes G in the overall bond market, in comparison to the stock of Bondes D and Udibonos, suggests that investors indicartes a preference for both instrument offering a secure return or the ability to preserve their purchasing power.

Lastly, it's turn to explore additional options avaiable for charts, such as the Select chart label. The previous function in Alphacast enables the user to add multiple levels within a single chart, providing the ability to showcase diverse units and customize each level to suit your own preferences. Cast your eyes upon the chart on the right, there's practical case of this remarkable function, in which only three levels are utilized to display information about fixed-income securities specifically for three types of investors.

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