The fat cats know Mexico’s poorly run state owned oil company is “too big to fail”

TBTF means bonanza for those who have the means to exploit the situation. Pemex will get bailed out (and likely with at least some American dollars.)

(From Bloomberg)

True believers in Petroleos Mexicanos are fueling a rally in its bonds, reckoning that government support for the beleaguered state-owned company will ultimately provide a backstop from any troubles…

…“The ironic thing about Pemex is that the worse the credit profile deteriorates, the more it becomes a sovereign credit,” said Roger Horn, a senior emerging-markets strategist at SMBC Nikko Securities America in New York who is traveling to Mexico with a group of investors next week to scout opportunities.

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