-
Bill Gross: Mexican peso is 15 to 20% undervalued
Closely watched bond investor Bill Gross said Mexico is a great bet after the peso appreciated on news the Federal Reserve would leave its benchmark interest rate unchanged near zero. The Janus Capital bond fund manager observed that the peso jumped half a percent Wednesday immediately after the U.S. central bank released its statement. He said he is bullish on Mexico because its forward bond rates on five- to 10-year debt are close to 7.5 percent and its inflation rate is 3 percent. "Now its currency rate is appreciating as opposed to depreciating. I think the peso is 15 to 20 percent undervalued," Gross told ... (full story)