Repurchase Agreements

Repurchase Agreements

Repurchase Agreements (Repos) are principal-protected short term investments secured by debt instruments such as government or corporate bonds. With a Repo, the investor’s funds earn an agreed upon return for a fixed period of time with a specific maturity date and are secured by a specified bond. At maturity, full repayment of the initial investment plus the return becomes due under the Repo contract.

Features of KSBM’s Repurchase Agreements

  • Backed by high quality securities
  • Denominated in TT$ and US$
  • Offered in a range of tenors up to 1 year
  • Competitive rates
  • Same day value for new investments

Before investing you should be aware of the following with respect to Repos:

  • Repos are not bank deposits and funds invested via repos are not covered by the Deposit Insurance Corporation
  • Investing in a repo entails risks, such as the risk that the company would be unable to fulfil its obligation at maturity and the investor may be unable to recover his or her entire investment from the sale of the underlying security
  • Repos are documented via a master repurchase agreement that details the terms of the transaction as well as the rights and obligations of the investor and the company. This includes the investor’s right to receive a confirmation of the transaction and to take possession of the security in the event of a default by the company. The company is obligated to apply the appropriate margin and to mark-to-market repos in accordance with Guidelines issued by the Trinidad and Tobago Securities and Exchange Commission. The company has the right to substitute the underlying security with an equivalent security of equal or greater value and to receipt of the coupons paid on the underlying security


Would you like to earn higher returns on a minimum of TT$60,000 or US$10,000 for a term of up to 1 year?

Contact Us at 627-KSBM (5726) or Click Here to Request a Call