Something Is Very Wrong At Mexico's Largest Construction Company...

Let’s say, for argument’s sake, that you’re a big company in an emerging market and suddenly, a commodities crash for the ages and a "surprise" devaluation by the world’s engine for global growth and trade sends your country’s currency into a veritable tailspin. 

If that were the case, just about the worst possible situation you could find yourself in would go something like this (adapted from Bloomberg): "Eighty-five percent of [your] backlog is denominated in the [home currency], which plunged to a record low this week [and] almost half of [your] debt is in foreign currencies, mostly dollars."

Well, that’s precisely what the situation looks like for Mexico’s largest construction company Empresas ICA SAB which spooked bond investors earlier this month by selling a key 3% stake in an airport operator for $56 million in order to pay down debt.

That has sparked liquidity worries and as you can see from the following, investors are slightly concerned.

As Bloomberg notes, this is the "hardest hit bond in emerging markets" and it should serve as a poignant reminder of just how bad it is out there for the world’s emerging economies.