Brazil, second , is particularly valued by Fortune 1000 companies and large commercial banks although Debt and equity investors prefer Mexico by a wide margin and rate both Chile and Argentina over Brazil. But mostly, investors are optimistic that Latin America's economic climate has improved for the long term. You're not going to put your money down in those types of situations unless you're confident the reforms are for real and the payoff will be there, and investors are saying they don't want to wait any longer to bet on the prospects for growth in the region. While there is some skepticism, it's very significant that four out of five investors are more confident in Latin America than five years ago. Instead of being interested in government debt, which caused so many any problems in the last decade, bank activity in Latin America is being driven by corporate clients because of privatization.
Privatization is the key to banking enthusiasm today.
Clearly the banking system is still fragile, but Mexico is committed to serious structural reform. It has a more diverse economy and there are plenty of solid companies providing quality goods and services. Exports will grow whether or not a Free Trade Area of the Americas is created. Multinational investors still prefer Mexico because of its proximity to the United States and its diverse economy. The market accords Mexico a tighter spread.