Investors Keep the Faith in Pemex After Rig Fire Slashes Output
- Pemex bonds rallied in each of the three days after the fire
- Investors are confident the government will step in to help
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It seems that every blow to Mexico’s state-run oil company just reinforces bondholders’ faith in its long-term outlook.
Debt issued by Petroleos Mexicanos, or Pemex, rallied this week even after a fire engulfed one of the company’s oil platforms and temporarily took a quarter of its production off-line. Rising oil prices were one reason, but perhaps more importantly the disaster highlights investor confidence that the government will step in to help out the oil major if needed.