A top investment banker in Barbados expects the government bonds to grow in popularity with now that they are being traded on the local stock exchange, but at present, it's the Series F bonds which are most in demand.
Speaking at the Royal Fidelity Investor Forum held last Thursday at the Barbados Hilton Resort, Royal Fidelity’s Vice President and Country Head, Jillian Nunes, said Series F bonds, which are different in that they are straight principal repayments with no interest accruing, and have about three years left until the last payment, were currently priced by Royal Fidelity at Bds$87.40.
“This is the series that we noticed that the buyers in the market are actively pursuing,” she said.
Ms. Nunes added that more and more clients were asking if the bonds could be sold to raise cash, and the "good news" was that these securities were now listed on the Barbados Stock Exchange and can be traded.
Ms. Nunes also noted Royal Fidelity’s proposed pricing for the other bonds, saying Bs and Cs were valued at around $72.30 for a par value of $100; while for Series D, Royal Fidelity’s pricing was around $54.00.
With the liquidation of Resolution Life there were even more individuals holding these bonds, she said, and “in the absence of an abundance of good corporate issuances and Barbados dollar investments, there will be companies - possibly credit unions, pension plans and banks - who at some point due to the level of excess cash and at the right price will be able to purchase these securities.”
Ms. Nunes noted that, as of August 1, both residents and non-residents have been permitted to hold foreign currency accounts in Barbados, and while more guidance was expected to come from the Central Bank of Barbados, Royal Fidelity was ”Poised to open a whole new world of investment options to the local community.”
Photos (courtesy Royal Fidelity): Front Page: Ms. Nunes speaking at the ROyal Fidelity Investors' FOrum
Above: (From left:) Jillian Nunes, Vice President/ Country Head of Royal Fidelity, Tresha Nelson, Royal Fidelity’s Marketing and Public Relations Coordinator, and Keynote Speaker Mia Kafoury, International Market Strategist at Morgan Stanley.
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