EFTA Document EFTA01451330

future, and USD/MxN likely stable or stronger in real (deflated) terms, I think it is good value. The curve is steep. If you look at 10Y10Y UST and 10Y10Y MXN yields, the spread is above 500bp . Say inflation differential is 100bp higher in Mex and credit diff is 100bp (10Y CDS is about 100bp higher in mexico although mex has much better debt dyn), this still leaves about 300bp of cushion for real depreciation per year_In sum, it seems good value near term mark to market risk is slower pac