Repurchase Agreements (Repos)
A Repo involves the owner of securities (Bourse) selling some of their securities to an investor (you) under an agreement to be repurchased at a predetermined price at a future date.
Repos are customizable fixed-income money market instruments, where the interest rate and tenors are stated and known at the beginning of the investment.
At Bourse, we provide Repo facilities in both TT Dollar and US Dollar investments.
Who should invest in a REPO?
A Repo is designed for the short to medium term investor looking to ‘warehouse’ surplus funds for substantially higher returns, with low risk.
Repos are also an attractive choice for the investor who may be looking for a similar, but better option than a traditional Bank Fixed Deposit.
Attractive Returns – Superior fixed investment returns in comparison to those offered on regular Money Market Mutual Funds and Banks’ Fixed Deposit Accounts.
Liquidity – The tenor of the Repo may vary from 6 months to 1, 2 or 3 Years.
Low risk – Reduction of counterparty risk due to the collateral exchanged for your funds, unlike fixed deposits and other unsecured short term facilities.
Diversification – A different option for your ‘surplus’ funds, and for your overall Investment portfolio.
What is the minimum amount to invest?
The minimum TT$ investment is $250,000
The minimum US$ investment is $100,000
- The Repo has a fixed interest rate attached to the investment.
- At maturity, the investor is paid the ‘repurchase price’, i.e., the principal plus all accrued interest.
- The underlying securities backing the investments are high quality government and corporate bonds.
- Bourse monitors the value of the assigned assets on a daily basis and will meet any shortfall appropriately.
- The securities are assigned to the investor.
Interested investors can call 1-868-226-8773 or send an email to email@example.com
The Documents needed for opening an Account are:
- Two (2) forms of photo identification (e.g. National Identification Card, T&T Passport or Driver’s License)
- Proof of Address not older than 3 months (e.g. Utility Bill, Bank or Credit Card Statement)
- Job Letter and recent Pay slip
- A Source of Funds Declaration Form (which we will provide).
You will be required to open the Account at any of Bourse’s offices, but thereafter, any further Investments may be done at any branch of First Citizens Bank (please notify us if First Citizens is used).
You can invest using:
- Manager’s cheques
- Personal cheques (subject to management approval)
- Wire Transfer of funds
- Direct deposits at any branch of First Citizens Bank Ltd