Mexico : Capital Market Development
Securities markets in Mexico are orderly and relatively innovative; however, corporate markets lag behind those in comparator countries. The government bond market accounts for the bulk of the fixed-income segment, and is well developed and active....
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/03/18606007/mexico-capital-market-development-technical-note http://hdl.handle.net/10986/16747 |
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okr-10986-16747 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANK ACCOUNTING ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET VALUE AUCTIONS BACKED SECURITIES BANK CREDIT BANK DEBT BANK FINANCING BANK LENDING BANKING CRISIS BANKING SECTORS BOND BOND INDEX BOND ISSUANCES BOND MARKET BOND MARKETS BONDS BROKERAGE BROKERAGE ACTIVITIES BROKERS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH MARKET CENTRAL BANK CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANKS COMPOSITION OF GOVERNMENT DEBT CONFLICT OF INTEREST CONFLICTS OF INTEREST CONSUMER LOANS CORPORATE BOND CORPORATE BONDS CORPORATE DEBT CORPORATE DEBT SECURITIES CORPORATE GOVERNANCE CORPORATE MARKETS CREDIT INSTITUTIONS CREDIT RATINGS CREDIT SOURCES DEBT COMPOSITION DEBT INSTRUMENTS DEBT ISSUERS DEBT MANAGEMENT POLICIES DEBT MARKETS DEBT SECURITIES DEPOSIT DERIVATIVES DERIVATIVES MARKET DEVELOPMENT BANK DIRECT INVESTMENT DIRECT INVESTMENTS DOMESTIC DEBT DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC MARKETS DUE DILIGENCE EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY FUNDS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKETS EQUITY SECURITIES EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCING REQUIREMENTS FOREIGN EQUITIES FOREIGN INVESTORS FUTURES FUTURES EXCHANGE GOVERNMENT BOND GOVERNMENT BOND MARKET GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM HOLDING HOLDINGS HOUSING FINANCE INCOME INSTRUMENTS INDEXED BONDS INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE PENETRATION INTEREST RATE INTEREST RATE SWAPS INTERNATIONAL DEBT INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT BANKS INVESTMENT BEHAVIOR INVESTMENT FUNDS INVESTMENT OUTLETS INVESTMENT PORTFOLIO INVESTMENT REGIME INVESTMENT STRATEGIES INVESTOR BASE INVESTOR PROTECTION IPO ISSUANCE ISSUER OF DEBT LACK OF TRANSPARENCY LEGAL FRAMEWORK LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY RISKS LOAN LOCAL MARKET LONG-TERM FINANCE LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENTS MARK TO MARKET MARKET ACCESS MARKET BENCHMARKS MARKET EQUITY MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICE MARKET SHARE MATURITIES MATURITY MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES MUTUAL FUND MUTUAL FUND ASSET MUTUAL FUND ASSETS MUTUAL FUND INDUSTRY MUTUAL FUND INVESTMENTS MUTUAL FUND MANAGERS MUTUAL FUNDS NOMINAL YIELD OUTSTANDING AMOUNT OUTSTANDING DEBT PENSION PENSION FUND PENSION FUND INVESTMENTS PENSION FUNDS PORTFOLIO PORTFOLIO DIVERSIFICATION POTENTIAL INVESTORS PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALERS PRIMARY MARKET PRIMARY MARKETS PRIVATE CREDIT PRIVATE DEBT PRIVATE EQUITY PRIVATE INVESTMENTS PRIVATE LENDERS PROFESSIONAL INVESTORS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MARKET PUBLIC DEBT SECURITIES PUBLIC MARKET PUBLIC MARKETS QUOTATION SYSTEM REAL ESTATE INVESTMENT REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RETAIL INVESTORS RETURN RISK AVERSION SAVINGS ACCOUNTS SAVINGS RATES SECONDARY MARKET SECONDARY MARKETS SECURITIES SECURITIES DEALERS SECURITIES MARKET SECURITIES MARKETS SETTLEMENT SHORT-TERM DEBT SHORT-TERM DEBTS STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS STOCKS SUBORDINATED DEBT TOTAL DEBT TRADING TREASURY TREASURY BILLS TREASURY BONDS TURNOVER UNDERWRITERS VALUATION YIELD CURVE |
| spellingShingle |
ACCESS TO BANK ACCOUNTING ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET VALUE AUCTIONS BACKED SECURITIES BANK CREDIT BANK DEBT BANK FINANCING BANK LENDING BANKING CRISIS BANKING SECTORS BOND BOND INDEX BOND ISSUANCES BOND MARKET BOND MARKETS BONDS BROKERAGE BROKERAGE ACTIVITIES BROKERS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH MARKET CENTRAL BANK CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANKS COMPOSITION OF GOVERNMENT DEBT CONFLICT OF INTEREST CONFLICTS OF INTEREST CONSUMER LOANS CORPORATE BOND CORPORATE BONDS CORPORATE DEBT CORPORATE DEBT SECURITIES CORPORATE GOVERNANCE CORPORATE MARKETS CREDIT INSTITUTIONS CREDIT RATINGS CREDIT SOURCES DEBT COMPOSITION DEBT INSTRUMENTS DEBT ISSUERS DEBT MANAGEMENT POLICIES DEBT MARKETS DEBT SECURITIES DEPOSIT DERIVATIVES DERIVATIVES MARKET DEVELOPMENT BANK DIRECT INVESTMENT DIRECT INVESTMENTS DOMESTIC DEBT DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC MARKETS DUE DILIGENCE EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY FUNDS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKETS EQUITY SECURITIES EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCING REQUIREMENTS FOREIGN EQUITIES FOREIGN INVESTORS FUTURES FUTURES EXCHANGE GOVERNMENT BOND GOVERNMENT BOND MARKET GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM HOLDING HOLDINGS HOUSING FINANCE INCOME INSTRUMENTS INDEXED BONDS INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE PENETRATION INTEREST RATE INTEREST RATE SWAPS INTERNATIONAL DEBT INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT BANKS INVESTMENT BEHAVIOR INVESTMENT FUNDS INVESTMENT OUTLETS INVESTMENT PORTFOLIO INVESTMENT REGIME INVESTMENT STRATEGIES INVESTOR BASE INVESTOR PROTECTION IPO ISSUANCE ISSUER OF DEBT LACK OF TRANSPARENCY LEGAL FRAMEWORK LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY RISKS LOAN LOCAL MARKET LONG-TERM FINANCE LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENTS MARK TO MARKET MARKET ACCESS MARKET BENCHMARKS MARKET EQUITY MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICE MARKET SHARE MATURITIES MATURITY MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES MUTUAL FUND MUTUAL FUND ASSET MUTUAL FUND ASSETS MUTUAL FUND INDUSTRY MUTUAL FUND INVESTMENTS MUTUAL FUND MANAGERS MUTUAL FUNDS NOMINAL YIELD OUTSTANDING AMOUNT OUTSTANDING DEBT PENSION PENSION FUND PENSION FUND INVESTMENTS PENSION FUNDS PORTFOLIO PORTFOLIO DIVERSIFICATION POTENTIAL INVESTORS PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALERS PRIMARY MARKET PRIMARY MARKETS PRIVATE CREDIT PRIVATE DEBT PRIVATE EQUITY PRIVATE INVESTMENTS PRIVATE LENDERS PROFESSIONAL INVESTORS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MARKET PUBLIC DEBT SECURITIES PUBLIC MARKET PUBLIC MARKETS QUOTATION SYSTEM REAL ESTATE INVESTMENT REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RETAIL INVESTORS RETURN RISK AVERSION SAVINGS ACCOUNTS SAVINGS RATES SECONDARY MARKET SECONDARY MARKETS SECURITIES SECURITIES DEALERS SECURITIES MARKET SECURITIES MARKETS SETTLEMENT SHORT-TERM DEBT SHORT-TERM DEBTS STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS STOCKS SUBORDINATED DEBT TOTAL DEBT TRADING TREASURY TREASURY BILLS TREASURY BONDS TURNOVER UNDERWRITERS VALUATION YIELD CURVE International Monetary Fund World Bank Mexico : Capital Market Development |
| geographic_facet |
Latin America & Caribbean Mexico |
| description |
Securities markets in Mexico are orderly
and relatively innovative; however, corporate markets lag
behind those in comparator countries. The government bond
market accounts for the bulk of the fixed-income segment,
and is well developed and active. While financial savings
rates have been growing, little has been transformed into
long-term investments. Most of the savings remain in
traditional savings accounts. Institutional investors still
hold the bulk of their assets in government bonds. Mexico
will need to find solutions to further develop its capital
market to fund its development needs. In the infrastructure
sector alone, the country needs approximately US$230 billion
of new investments. In the corporate sector, provision of
financing by banks fare well below peers, especially for
small and medium enterprises. Meanwhile, the pension fund
industry, growing at about US$20-US$30 billion annually,
requires sound investment outlets. The large concentration
in the control of financial intermediaries raises complex
issues and may stunt market development. The investor base
in the equity market lacks diversity, with limited
development of the retail segment. Mutual funds could play a
key role in mobilizing long-term finance. Most funds are
used by banks as alternative ways of tapping clients'
savings. Mutual funds (particularly open ones) are much more
sensitive to liquidity risks than institutional investors
with long-term horizon. The independent distribution vehicle
created under the 2002 reform has not been very successful
in fostering sustainable entry. Restrictions placed on
institutional investors limiting investment to only publicly
offered securities keep them away from more specialized investments. |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
International Monetary Fund World Bank |
| author_facet |
International Monetary Fund World Bank |
| author_sort |
International Monetary Fund |
| title |
Mexico : Capital Market Development |
| title_short |
Mexico : Capital Market Development |
| title_full |
Mexico : Capital Market Development |
| title_fullStr |
Mexico : Capital Market Development |
| title_full_unstemmed |
Mexico : Capital Market Development |
| title_sort |
mexico : capital market development |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/03/18606007/mexico-capital-market-development-technical-note http://hdl.handle.net/10986/16747 |
| _version_ |
1764434601624731648 |
| spelling |
okr-10986-167472021-04-23T14:03:32Z Mexico : Capital Market Development International Monetary Fund World Bank ACCESS TO BANK ACCOUNTING ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET VALUE AUCTIONS BACKED SECURITIES BANK CREDIT BANK DEBT BANK FINANCING BANK LENDING BANKING CRISIS BANKING SECTORS BOND BOND INDEX BOND ISSUANCES BOND MARKET BOND MARKETS BONDS BROKERAGE BROKERAGE ACTIVITIES BROKERS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CASH MARKET CENTRAL BANK CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANKS COMPOSITION OF GOVERNMENT DEBT CONFLICT OF INTEREST CONFLICTS OF INTEREST CONSUMER LOANS CORPORATE BOND CORPORATE BONDS CORPORATE DEBT CORPORATE DEBT SECURITIES CORPORATE GOVERNANCE CORPORATE MARKETS CREDIT INSTITUTIONS CREDIT RATINGS CREDIT SOURCES DEBT COMPOSITION DEBT INSTRUMENTS DEBT ISSUERS DEBT MANAGEMENT POLICIES DEBT MARKETS DEBT SECURITIES DEPOSIT DERIVATIVES DERIVATIVES MARKET DEVELOPMENT BANK DIRECT INVESTMENT DIRECT INVESTMENTS DOMESTIC DEBT DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC MARKETS DUE DILIGENCE EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY FUNDS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKETS EQUITY SECURITIES EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCING REQUIREMENTS FOREIGN EQUITIES FOREIGN INVESTORS FUTURES FUTURES EXCHANGE GOVERNMENT BOND GOVERNMENT BOND MARKET GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM HOLDING HOLDINGS HOUSING FINANCE INCOME INSTRUMENTS INDEXED BONDS INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INITIAL PUBLIC OFFERING INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE PENETRATION INTEREST RATE INTEREST RATE SWAPS INTERNATIONAL DEBT INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT BANKS INVESTMENT BEHAVIOR INVESTMENT FUNDS INVESTMENT OUTLETS INVESTMENT PORTFOLIO INVESTMENT REGIME INVESTMENT STRATEGIES INVESTOR BASE INVESTOR PROTECTION IPO ISSUANCE ISSUER OF DEBT LACK OF TRANSPARENCY LEGAL FRAMEWORK LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY RISKS LOAN LOCAL MARKET LONG-TERM FINANCE LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENTS MARK TO MARKET MARKET ACCESS MARKET BENCHMARKS MARKET EQUITY MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICE MARKET SHARE MATURITIES MATURITY MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES MUTUAL FUND MUTUAL FUND ASSET MUTUAL FUND ASSETS MUTUAL FUND INDUSTRY MUTUAL FUND INVESTMENTS MUTUAL FUND MANAGERS MUTUAL FUNDS NOMINAL YIELD OUTSTANDING AMOUNT OUTSTANDING DEBT PENSION PENSION FUND PENSION FUND INVESTMENTS PENSION FUNDS PORTFOLIO PORTFOLIO DIVERSIFICATION POTENTIAL INVESTORS PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALERS PRIMARY MARKET PRIMARY MARKETS PRIVATE CREDIT PRIVATE DEBT PRIVATE EQUITY PRIVATE INVESTMENTS PRIVATE LENDERS PROFESSIONAL INVESTORS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MARKET PUBLIC DEBT SECURITIES PUBLIC MARKET PUBLIC MARKETS QUOTATION SYSTEM REAL ESTATE INVESTMENT REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RETAIL INVESTORS RETURN RISK AVERSION SAVINGS ACCOUNTS SAVINGS RATES SECONDARY MARKET SECONDARY MARKETS SECURITIES SECURITIES DEALERS SECURITIES MARKET SECURITIES MARKETS SETTLEMENT SHORT-TERM DEBT SHORT-TERM DEBTS STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS STOCKS SUBORDINATED DEBT TOTAL DEBT TRADING TREASURY TREASURY BILLS TREASURY BONDS TURNOVER UNDERWRITERS VALUATION YIELD CURVE Securities markets in Mexico are orderly and relatively innovative; however, corporate markets lag behind those in comparator countries. The government bond market accounts for the bulk of the fixed-income segment, and is well developed and active. While financial savings rates have been growing, little has been transformed into long-term investments. Most of the savings remain in traditional savings accounts. Institutional investors still hold the bulk of their assets in government bonds. Mexico will need to find solutions to further develop its capital market to fund its development needs. In the infrastructure sector alone, the country needs approximately US$230 billion of new investments. In the corporate sector, provision of financing by banks fare well below peers, especially for small and medium enterprises. Meanwhile, the pension fund industry, growing at about US$20-US$30 billion annually, requires sound investment outlets. The large concentration in the control of financial intermediaries raises complex issues and may stunt market development. The investor base in the equity market lacks diversity, with limited development of the retail segment. Mutual funds could play a key role in mobilizing long-term finance. Most funds are used by banks as alternative ways of tapping clients' savings. Mutual funds (particularly open ones) are much more sensitive to liquidity risks than institutional investors with long-term horizon. The independent distribution vehicle created under the 2002 reform has not been very successful in fostering sustainable entry. Restrictions placed on institutional investors limiting investment to only publicly offered securities keep them away from more specialized investments. 2014-01-30T19:55:24Z 2014-01-30T19:55:24Z 2013-03 http://documents.worldbank.org/curated/en/2013/03/18606007/mexico-capital-market-development-technical-note http://hdl.handle.net/10986/16747 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Economic & Sector Work Latin America & Caribbean Mexico |