Yes an absolute killing, similar to the one mentioned in the article for back in 2008 - may not be as much as back then but still a lot.
This is a case where a hedge plays out well, and the main motive for their play is stability for their government spending. Good for the citizens of Mexico
Not a killing. Only 25% of Mexico's oil production was hedged. So we're still losing ton of money on the other 75%, since oil is one of the main revenues of the Mexican goverment.
It's just insurance so when the prices crash the country doesn't go with it. Since no insurance company in the world can insure even a small govt, the only way to go for it is with financial instruments.
We rather lose a bit of money during the good times and not get wiped during the bad times.
It also seems Hacienda is quite decent at reading the markets from the article, I didn't know as much.
This is a case where a hedge plays out well, and the main motive for their play is stability for their government spending. Good for the citizens of Mexico