International Monetary FundWorld Bank2014-01-302014-01-302013-03https://hdl.handle.net/10986/16747Securities 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.en-USCC BY 3.0 IGOACCESS TO BANKACCOUNTINGASSET CLASSASSET CLASSESASSET MANAGEMENTASSET VALUEAUCTIONSBACKED SECURITIESBANK CREDITBANK DEBTBANK FINANCINGBANK LENDINGBANKING CRISISBANKING SECTORSBONDBOND INDEXBOND ISSUANCESBOND MARKETBOND MARKETSBONDSBROKERAGEBROKERAGE ACTIVITIESBROKERSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCASH MARKETCENTRAL BANKCENTRAL SECURITIES DEPOSITORYCOLLATERALCOMMERCIAL BANKSCOMPOSITION OF GOVERNMENT DEBTCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSUMER LOANSCORPORATE BONDCORPORATE BONDSCORPORATE DEBTCORPORATE DEBT SECURITIESCORPORATE GOVERNANCECORPORATE MARKETSCREDIT INSTITUTIONSCREDIT RATINGSCREDIT SOURCESDEBT COMPOSITIONDEBT INSTRUMENTSDEBT ISSUERSDEBT MANAGEMENT POLICIESDEBT MARKETSDEBT SECURITIESDEPOSITDERIVATIVESDERIVATIVES MARKETDEVELOPMENT BANKDIRECT INVESTMENTDIRECT INVESTMENTSDOMESTIC DEBTDOMESTIC INSTITUTIONAL INVESTORSDOMESTIC MARKETDOMESTIC MARKETSDUE DILIGENCEEMERGING MARKETEMERGING MARKETSEQUITIESEQUITY FUNDSEQUITY INDEXEQUITY INVESTMENTEQUITY INVESTMENTSEQUITY MARKETEQUITY MARKETSEQUITY SECURITIESEXTERNAL DEBTFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL SAVINGSFINANCIAL SECTOR DEVELOPMENTFINANCIAL SYSTEMFINANCING REQUIREMENTSFOREIGN EQUITIESFOREIGN INVESTORSFUTURESFUTURES EXCHANGEGOVERNMENT BONDGOVERNMENT BOND MARKETGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT DEBT MARKETGOVERNMENT DEBT SECURITIESGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROSS SETTLEMENT SYSTEMHOLDINGHOLDINGSHOUSING FINANCEINCOME INSTRUMENTSINDEXED BONDSINFLATIONINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINITIAL PUBLIC OFFERINGINITIAL PUBLIC OFFERINGSINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINSURANCE PENETRATIONINTEREST RATEINTEREST RATE SWAPSINTERNATIONAL DEBTINTERNATIONAL FINANCIAL MARKETSINVESTINGINVESTMENT BANKSINVESTMENT BEHAVIORINVESTMENT FUNDSINVESTMENT OUTLETSINVESTMENT PORTFOLIOINVESTMENT REGIMEINVESTMENT STRATEGIESINVESTOR BASEINVESTOR PROTECTIONIPOISSUANCEISSUER OF DEBTLACK OF TRANSPARENCYLEGAL FRAMEWORKLIQUID INSTRUMENTSLIQUIDITYLIQUIDITY RISKSLOANLOCAL MARKETLONG-TERM FINANCELONG-TERM INTERESTLONG-TERM INTEREST RATESLONG-TERM INVESTMENTSMARK TO MARKETMARKET ACCESSMARKET BENCHMARKSMARKET EQUITYMARKET INFRASTRUCTUREMARKET PARTICIPANTSMARKET PLAYERSMARKET PRICEMARKET SHAREMATURITIESMATURITYMONETARY FUNDMONETARY POLICYMORTGAGEMORTGAGE-BACKED SECURITIESMORTGAGESMUTUAL FUNDMUTUAL FUND ASSETMUTUAL FUND ASSETSMUTUAL FUND INDUSTRYMUTUAL FUND INVESTMENTSMUTUAL FUND MANAGERSMUTUAL FUNDSNOMINAL YIELDOUTSTANDING AMOUNTOUTSTANDING DEBTPENSIONPENSION FUNDPENSION FUND INVESTMENTSPENSION FUNDSPORTFOLIOPORTFOLIO DIVERSIFICATIONPOTENTIAL INVESTORSPRIMARY DEALERPRIMARY DEALER SYSTEMPRIMARY DEALERSPRIMARY MARKETPRIMARY MARKETSPRIVATE CREDITPRIVATE DEBTPRIVATE EQUITYPRIVATE INVESTMENTSPRIVATE LENDERSPROFESSIONAL INVESTORSPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC DEBT MARKETPUBLIC DEBT SECURITIESPUBLIC MARKETPUBLIC MARKETSQUOTATION SYSTEMREAL ESTATE INVESTMENTREGULATORY CONSTRAINTSREGULATORY FRAMEWORKRETAIL INVESTORSRETURNRISK AVERSIONSAVINGS ACCOUNTSSAVINGS RATESSECONDARY MARKETSECONDARY MARKETSSECURITIESSECURITIES DEALERSSECURITIES MARKETSECURITIES MARKETSSETTLEMENTSHORT-TERM DEBTSHORT-TERM DEBTSSTOCK EXCHANGESTOCK MARKETSTOCK MARKET CAPITALIZATIONSTOCK MARKETSSTOCKSSUBORDINATED DEBTTOTAL DEBTTRADINGTREASURYTREASURY BILLSTREASURY BONDSTURNOVERUNDERWRITERSVALUATIONYIELD CURVEWorld Bank10.1596/16747