Using a Grounded Theory approach, 23 individual interviews and 7 focus groups were analyzed. The study examined sexual risk between these two groups of men, and the significance of the economic exchanges involved in their sexual interactions. This study describes the complex dynamics of the sexual, economic and social interactions between a group of feminized homosexual men and men who have sex with men and self-identify as heterosexual (‘ mostaceros’), in lower-income peripheral urban areas of Lima and Trujillo, Peru.