Bond market fears

Despite having most of its Caribbean High Interest Fund portfolio in Barbados Government paper, one of the island’s biggest institutional investors says it is very concerned about the risks in Caribbean government debt.
In its first 2013 quarterly report, Fortress Fund Managers said it “remained squarely in capital preservation mode”.
According to the Fortress report: “We take the job of preserving capital very seriously and see significant risks in Caribbean government debt that are only now becoming more widely acknowledged.”
As a result of these concerns, Fortress said, it continued to hold many of its investments in short-term Government Treasury bills.
“We continue to hold a large portion of the fund’s Barbados-dollar investments in the relative safety of Government of Barbados Treasury bills and wholesale bank deposits with term out to 90 days.