Government of The Bahamas
USD-denominated senior unsecured bonds of the Government of The Bahamas. The Bahamas runs a USD-pegged economy (BSD 1:1 with USD) with revenues dominated by tourism (~50% of GDP) and offshore financial services. A consistent issuer in the Caribbean USD bond market.
Top of the Caribbean sovereign yield curve in USD — 8.25% coupon at ~10yr duration is a compelling carry trade for clients who can stomach single-B sovereign volatility. Worth allocating alongside JAMAN for regional diversification; we view Jamaica's credit trajectory as more positive than Bahamas' over the medium term, but Bahamas offers a wider spread to compensate.
This research note is prepared by GK Capital Management for informational purposes only and does not constitute an offer or solicitation to buy or sell any security. Indicative metrics shown are subject to change without notice. Credit ratings are sourced from public rating agency reports as of the publication date and may have moved since. Past performance is not indicative of future results. Investors should consult their advisor before transacting in any fixed income security.