Headlines:
| Little impact from JDX says JMMB & Mayberry |
|
|
| Tuesday, 09 February 2010 | |
 Two of the country's leading
investment firms say they will not be significantly affected by the government's
debt exchange programme.Jamaica Money Market Brokers Limited (JMMB) and Mayberry Investments have advised the Jamaica Stock Exchange that the impact on their balance sheets will be minimal. Last month, JMMB agreed to participate in the Jamaica Debt Exchange (JDX). It said the projected impact on its equity and profitability will be minuscule with capital adequacy at 36.4% still far exceeding the Financial Services Commission`s 14% requirement.  Meanwhile, Mayberry
Investments has advised that it will not be materially affected by the effects
of the Debt Exchange programme.Mayberry's assessment is that the impact will be less than 1% of its capital. Under the JDX, holders of Government of Jamaica debt instruments exchanged them for new securities with lower interest rates. JDX a stabilising force for the pensions industry In the meantime, at least one senior investment analyst does not share the view the debt exchange programme will have a severe impact on the pension funds industry.  Dr. Adrian Stokes. But Dr. Adrian Stokes, Senior Investment Manager at JMMB says on the contrary, the debt exchange programme will be a stabilising force for the pensions industry. "What I get from trustees is that they are saying listen, if we don't enter this transaction then pension funds stand to lose much more than they are losing right now so entering this transaction is actually protecting the long term value of pension funds and so firm that logic, they would discharge their fiduciary duties," he said. |