Risky returns on Caribbean government bonds

The huge losses suffered by investors in the recent St Kitts and Nevis debt exchange signals a need for government debt issues in the Caribbean to adequately compensate investors for the risks involved.

This suggestion was sent by the Barbados-based Fortress Fund Managers in their recently issued first quarter report on the performance of their funds over the first three months of 2012.

In their report on their Caribbean High Interest Fund, Fortress noted that indications were that the St Kitts and Nevis debt restructuring could see bonds drop 70 to 80 percent in value post-restructuring.

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