The Mexican government’s surprise decision to strip state-owned oil producer Petroleos Mexicanos of $3.4 billion is raising alarms for bondholders LM Capital Group LLC and Investment Placement Group. The Finance Ministry said Dec. 26 that it took the money, reducing cash holdings at the company known as Pemex to a 12-year low of 48 billion pesos ($3.3 billion). Returns on Pemex’s benchmark bonds due 2022 beat the emerging-market average last year, delivering 6.6 percent to investors on speculation that the country’s effort to lure private investment to the energy industry will reduce the company’s tax burden. To LM Capital and Investment Placement Group, the move is a cash grab by the government to offset a drop in revenue from the company amid a plunge in oil prices and the 10th straight year of declining output. During the first 11 months of 2014, taxes paid by Mexico City-based Pemex declined […]