Pemex Forced Sell-Off Makes Bonds Low-Hanging Fruit

Pemex bonds have fallen 30% this year as oil prices plunge
Investors see possible buying window after second junk rating

Octavio Romero Oropeza, chief executive officer of Petroleos Mexicanos (PEMEX), speaks while Andres Manuel Lopez Obrador, Mexico’s president, right, listens during a news conference at the National Palace in Mexico City, Mexico, on Tuesday, Jan. 7, 2020.Photographer: Alejandro Cegarra/Bloomberg

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By Justin Villamil, Ezra Fieser, and Pablo Rosendo Gonzalez

April 30, 2020 at 10:00 AM UTC

Updated on

April 30, 2020 at 4:38 PM UTC

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There’s little going right for Mexico’s state oil giant Petroleos Mexicanos which has been hit by a collapse in global crude prices and a second downgrade into junk that is forcing certain investors to dump their bonds.

Pemex debt has lost almost a third of its value since the start of the year. Yet some fund managers say the time to buy may be near.