All bonds issued by Mexico with maturity scheduled for 2018 are traded at a huge discount of their face value. I mean whatever currency or stock exchange used here’s an example :
For reference, they are traded at only ¼ of Venezualian bonds discount value which is rated as being on selective default.
This situation seems to be ongoing since the 2000s when the bonds where issued. What can explain such future default since the bonds where all issed after 1982 ?
Simply, this is a dual currency bond which means it is quoted in euro but to be paid back in Pesos :
1 EUR=23.23 MXN
23.23×4.5€=104.535MXN
The most likely reason is there is no reason to sell a mature bond (it's nearing the end of 2018). Whoever owns it can simple cash it in for the face value.
Mexican bonds seem to be doing reasonably well (or at least not Venezuelan bad) in the market.
Some Background (From http://www.worldgovernmentbonds.com)
Note the 7.94%
And this is day-traded Mexican Bonds historical data from tradingeconomics.com
