Competition in the Caribbean's debt capital markets is about to
heat up. Brokerage firms like Caribbean Money Market Brokers
(CMMB) are hoping to prise some bond mandates away from the
banks by establishing a real bond market in Port-of-Spain, the
region's self-proclaimed financial capital.
Bond Market Battle
Pointing to unused money in investors' portfolios and the unmet needs of smaller companies, Caribbean brokerage firms are gearing up to rival banks' bond business.
Merchant banks - as investment banks are known in the
Caribbean - owned by giants like RBTT and Republic Bank have
always dominated what they call a bond business. But this
resembles a private placement affair where banks underwrite a
sovereign or corporate issue and sell it to a few favored
institutional investors. The process of competitively bidding
for a mandate, setting price guidance, building a book and then
allocating it to as many institutional investors as possible is
not the norm in Trinidad.
There is little secondary trading. There is too much money
chasing too few issues, so bondholders are largely
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.