Daily I get calls from prospective clients looking for more information on global or international bonds that are recommended or suggested to them. Whether the yields are high or seem low, we patiently explain the details on the bonds and how the process works. If the client is a savvy investor, we address their specific questions and focus on the execution of their purchase. Whether a client is really interested or not, it is always our pleasure to give information and guidance This article is a guide to the steps taken to execute a bond daily.

Our discussions on bonds continue; after learning the bond basics, today we examine how bonds behave in an environment of high-interest rates, a relevant topic given the current interest rate environment. Before moving on to how bonds behave in a high-interest rate environment, we should first understand the reasons and conditions that generally create such an environment. Bond interest rates in a country are primarily influenced by the interest rates put forward by the government or monetary authorities like the Bank of Jamaica and the Federal Reserve in the USA.

If you own a unit trust or a mutual fund that invests directly in the bond or stock market, chances are – the value of your investment is down relative to last year. The performance of pooled funds is heavily influenced by the movement in the prices of the assets it holds. As asset prices rise, the return of the fund is boosted. As asset prices decline, the return of the fund is reduced or declines. 

You can’t pour from an empty cup or vessel, is a phrase that many of us have heard or used at some point in our lives. While the saying tends to be used in relation to our personal and mental well-being, I think it is pertinent to also include this phrase in our financial lives. As market volatility and soaring inflation has affected our day to day lives it gives us an opportunity to reassess our financial health.

Earlier this week, Tropical storm Ian passed through the region and caused much panic and chaos in the islands which were affected by the strong winds and heavy rains. Here in Jamaica the situation was no different. Those who were adequately prepared remained calm in anticipation of the possible destruction that such a turbulent system could bring. The unprepared were left to scramble trying to ascertain what would be needed to survive during and after the storm.

The U.S. Federal Reserve's (Fed) policy setting committee boosted its benchmark rate (fed funds rate) by 75 basis points (bps) or 0.75% on Wednesday, September 21^st. That was the third consecutive increase of such magnitude, and it brought the target range for the federal funds rate to 3.0% - 3.25%, the highest level since before the 2008 financial crisis. In the days leading up to the Fed meeting, the benchmark 10-year U.S. Treasury yield climbed past 3.5%, its highest level since 2011, while the 2-year U.S.

A promissory note, also called a "pro note", "p note" or simply "note", is a type of fixed-income debt instrument, similar to a bond, loan or even an IOU, in which one party, known as the issuer, makes a written promise to pay a certain amount of money to a specific person or entity, referred to as the noteholders, at a specific time. They have been around for many years and are common financial instruments in many countries, employed principally for short-time financing of companies.

Many local financial institutions have discontinued offering repurchase agreements, more popularly known as “repos”. However, repos should not be overlooked. Although simple in nature they are very useful short-term investments and can be a valuable addition to your portfolio.