Fixed Income Analysis /

MEXICAN NON-BANK FINANCIALS: Trade ideas on Crédito Real, Financiera Independencia and Unifin Financiera

    Rafael Elias
    Rafael Elias

    Director, Latin America Credit

    Tellimer Research
    2 November 2017
    Published byTellimer Research
    We initiate coverage of the three main “SOFOMs” (Sociedad Financiera de Objeto Múltiple, Financial Entity for Multiple Purposes, or “non-bank-financials”) in Mexico with some relative value trade ideas. SOFOMs, and their sister organisation SOFOLs (Financial Entities for Limited Purposes), typically yield better returns than the traditional, full-fledged financial institutions while still providing investors with exposure to the fundamentals that drive the financial sector in general.