This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mexico’s Proposed Telecommunications Reforms A Positive Sign For High Yield Investors, Says Market Vectors’ Fran Rodilosso

Stocks in this article: ANGL BONO CHLC EMLC FLTR HYEM IHY

Earlier this week, Mexican President Enrique Peña Nieto sent a bill to the Mexican Congress which, if it becomes law, would bring about major reforms in the Mexican telecommunications industry, including the introduction of greater governmental powers to combat monopolies and rules which could ease the path for more foreign investments. This news should be encouraging for investors for a number of key reasons, according to Fran Rodilosso, Fixed Income Portfolio Manager at Market Vectors ETFs.

“These proposed reforms are the latest in a recent series of encouraging signs that we have seen coming out of Mexico. The new administration has an aggressive reform agenda, and the proposed telecommunications reform is a positive sign of its willingness to take on some of the most powerful business interests in the country,” said Rodilosso. “As a long-time investor in high-yield emerging market bonds, I have seen how the market has treated the ‘also-rans’ in Mexico’s telephony and broadcasting industries; companies whose ability to compete in that country has at times seemed to be at the whim of the dominant players or the courts. Even last year, a smaller fixed line competitor lost important rulings on fees that severely hurt its profitability. In my view, this type of reform could level the playing field somewhat and open up some of these companies to foreign ownership.”

“Of course, if this bill passes and becomes law, the question remains of its effectiveness,” continued Rodilosso. “The courts have historically been friendly towards Mexico’s dominant companies and politically ingrained elites. Even the recent pro-creditor ruling on the Mexican bankruptcy case involving Vitro SAB happened on U.S. soil. If Vitro did not have U.S. subsidiaries, then creditors would have been left with very little leverage to combat the company’s reorganization plan was approved in local courts.”

“In my opinion, there are a variety of risks associated with investing in the small market, mostly fixed line, operators in Mexico. But the movement towards reform at this early stage in President Peña Nieto’s administration should be seen as an encouraging step in opening up the competitive landscape to potentially more foreign ownership,” he added.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.64 +9.41 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs