Bonds provide the investor with predictable cash flows.
Steady Cashflow
Bond Brokerage
Description
A bond is a fixed income debt instrument, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (coupon) to the holder and/or to repay the principal at a later date. It is a formal contract to repay borrowed money with interest at fixed intervals.
What kind of returns will I be receiving?
Bonds are a great alternative to other investments such as equities, mutual funds and fixed deposits and offer a good return as compared to its risk. Bonds are also much more secure than equities as they are governed by stricter terms and conditions.
How safe are bonds?
In terms of default risk (the risk that the bond issuer is unable to repay bond holders at the maturity date), bonds are usually rated by reputable rating agencies such as Standard and Poor’s, Moody’s, Fitch and CariCRIS (a Caribbean credit rating agency). The ratings given by these agencies are an indication of the issuer’s probability of default and ability to make its obligated payments. Investors therefore use ratings as a gauge of how safe a bond is. Generally, the higher the rating, the less likely the issuer will default.
Capital Gains
Some Bonds can be bought and sold which can therefore provide the investor with an opportunity for capital gains.
Wealth Creation
Bonds provide predictable income for the investor, as compared with equity dividends, which are paid at the discretion of the management and Board. This can be paid annually, semi-annually and quarterly as per the bond’s term and conditions.
Diversification
Bond Brokerage provides an opportunity for you to diversify your portfolio particularly now in a time where equities are risky and in a low interest mutual fund environment.
Fixed Returns
Bonds provide a fixed rate of return to the investor, as compared to money market mutual funds where the rate is lower and volatile.
Superior Returns
The returns that Bond Brokerage offers is a great avenue for the investor to get superior returns when compared to Banks or Mutual Funds with a fair amount of risk.
Bond
Specifics
What is the minimum investment amount?
The minimum investment amount is
Face Value
US $25,000
Rates are
4%-6%
Are there tax implications of investing in bonds?
Yes, but there are certain bonds which are tax exempt; however they are more difficult to source. We at Bourse will search the market if you so desire tax-free bonds.
What commission is charged by bourse?
Bourse’s rates of commission are competitive when compared to other bond brokerage houses in Trinidad and Tobago. In addition to this, all of our charges are included in the prices we quote and therefore returns are net.
Open an
Account
The following documentation are required to open an account:
- Company Incorporation Documents
- Proof of company registered address (most recent annual return)
- Proof of company mailing address (no older than 3 months e.g. utility bill, bank or credit card statement)
- Proof of address for each director, corporate secretary and beneficial owner (no older than 3 months e.g. utility bill, bank or credit card statement)
- Two forms of valid ID for each signatory, director, corporate secretary and beneficial owner
- Proof of income (company financial statements for the last 3 years e.g. audited financials)
*Additional documents may be requested if necessary
Frequently Asked
Questions
It is an instrument that the client/investor buys into to earn a fixed rate of return/interest over a medium to long term (anywhere up to twenty years). The return is usually higher than regular deposit accounts or fixed income funds.
The Interest (known as Coupon Interest) will be paid to the investor, usually twice a year.
A bond may also be sold before the maturity date, and depending on the prevailing investor market for the particular bond, the seller may either sell at a price higher or lower than the face value of what the bond was purchased for.
A credit rating, which is usually assigned by credit ratings agencies, such as Standard and Poor’s, or Moody’s, indicate how likely the issuer of the bond will be to be able to meet their obligated payments, whether the yearly interest, or the principal upon maturity.
Yes, Repos may be held jointly.
Downloadable
Resources
Bond Bulletin
January 2025
Bourse Bond Bulletin
W1
W2
W3
W4
Febraury 2025
Bourse Bond Bulletin
W1
W2
W3
W4
March 2025
Bourse Bond Bulletin
W1
W2
W3
W4
Disclaimer
Important information concerning the investment goals, risks, charges and expenses is contained in the prospectus, which is available at any Bourse Securities office or at www.bourseinvestment.com. Investors should carefully consider this information before investing. Performance is subject to variation and is likely to change over time. Past performance should not be treated as an indicator of future performance.