FixedIncome - BAHAMA 8.25% Jun 2036

BAHAMA 8.25% Jun 2036

Government of The Bahamas

Sovereign Caribbean Sovereign High Yield

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.

Buy

GKCM Recommendation

Key Strengths

01USD-linked economy reduces FX mismatch risk for the issuer
02Strong long-term tourism franchise (proximity to US market, brand strength)
03Active fiscal consolidation program post-COVID; primary balance improving
04Frequent issuer with active investor relations — well-understood credit

Key Risks

01Elevated debt-to-GDP (~80%+) with a narrow tax base (no income tax)
02Significant hurricane exposure — Dorian (2019) caused multi-billion damages
03Tourism concentration leaves the credit exposed to US consumer recessions
04Sub-investment grade with negative ratings drift over the past cycle

GKCM View Buy

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.

— GKCM Fixed Income Desk · 2026-06-24

Credit Ratings

S&P B+ HY

DIG →AAA

Moody's B1 HY

DIG →AAA

Fitch B+ HY

DIG →AAA

Composite HY · 52.0

Tenor Remaining

9.9 years

TodayJun 2036

Quick Facts

SectorCaribbean Sovereign
Maturity Bucket7–12 yrs
RatingsS&P B+ | Moody's B1 | Fitch B+
Rec. Date2026-06-24

This tear sheet 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.