Home' Trinidad and Tobago Guardian : May 9th 2013 Contents MAY 2013 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
COMMENTARY | BG23
Analysis of bond indices provides a good
indicator of bond market performance. In
Brazil, the Andima indices are a major gauge
of performance of government issued debt.
The Andima IRF-M index tracks the perform-
ance of fixed rate bonds, and since 2010, the
index has grown by 42 per cent.
The Andima IPCA index tracks the per-
formance of inflation linked bonds and has
grown by 59 per cent since 2010.
In comparison, the US ITRROV Index which
tracks the performance US dollar Treasury
bonds total return has grown by only 19 per
cent since 2010 and the UK COUSINI Index
which monitors the regions sovereign bonds
grew by only 17 per cent.
The data indicates that a fixed income
investor will likely gain higher yields and
returns investing in Brazil.
When comparing the composite yield curves
of Brazil versus the United States and the Unit-
ed Kingdom (Figure 3), an investor will notice
the vast difference in yield potentials over a
3 month to 10 year period. The composite
yield curve compares sovereign bonds from
Brazil against the United States and the United
The graph clearly indicates that Brazil sov-
ereign fixed income assets consistently return
higher yields than those from the US and UK.
This further adds to the fact that fixed income
investors can access greater returns from the
growing Latin American region and specifically
In analysing and comparing the global bond
market, investors would search out for invest-
ment grade bonds which provide higher and
lucrative yields on a risk adjusted basis.
Generally, short to medium term investors
would look for bonds with a maturity between
four and seven years and an investment grade
rating. In comparing the average yields of cor-
porate bonds that satisfy these investment
requirements, UK bonds average a yield of 1.4
per cent while US bonds average a yield of 2.1
On the other hand, Brazil corporate bonds
average a yield of 7.63 per cent while the Latin
American region yield averages 5.2 per cent
The higher yields in the Latin American
region, in addition to the bonds being invest-
ment grade, and the region possessing strong
economic indicators would be an ideal invest-
ment opportunity for an investor attempting
to add value to his or her wealth.
Investors who are now looking for the next
best opportunity can consider the Latin Amer-
ican bond market as a significant possibility.
While the US and UK struggle with economic
recovery and providing investors with accept-
able gains, the Latin American region is poised
for economic growth with Brazil becoming a
major player in the global economy and finan-
With the prospects for Latin America
becoming apparent, investors can now have
access to these gains through the Bourse Brazil
The fund offers investors diversification
through both specific geographic and asset
class allocation in a combination of USD,
Brazilian real, and other currency exposures
allowing an investor to tap into the gains pos-
sible within the region.
"This document has been prepared by Bourse Securities Ltd for information purposes only. Any trade in securities recommended herein is done subject to the fact that Bourse, its subsidiaries
and/or affiliates have or may have specific or potential conflicts of interest in respect of the security or the issuer of the security, including those arising from (i) trading or dealing in certain
securities and acting as an investment advisor; (ii) holding of securities of the issuer as beneficial owner; (iii) having benefited, benefitting or to benefit from compensation arrangements;
(iv) acting as underwriter in any distribution of securities of the issuer in the three years immediately preceding this document; or (v) having direct or indirect financial or other interest
in the security or the issuer of the security. Investors are advised accordingly.
Neither Bourse nor any of its subsidiaries, affiliates directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses
arising from the use of this document or its contents or reliance on the information contained herein. Bourse does not guarantee the accuracy or completeness of the information in this
document, which may have been obtained from or is based upon trade and statistical services or other third party sources. The information in this document is not intended to predict
actual results and no assurances are given with respect thereto."
negotiation and mediation
Port of Spain
• Learn how to mediate disputes
• Learn how to deal with tough bargainers
• Receive individual coaching in mediation
• Our joint ADR and Advanced ADR Programmes are
accredited by the Mediation Board of T&T.
"Very useful. I would recommend it for all
managers and supervisors. Excellent presenters."
- Sandra Jones, Ministry of Health, Port of Spain
held at the Capital Plaza Hotel
call 1.800.808.4132 or 416.307.0007
Brazil bond market
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