This is a good time to invest, Kurt Valley, general manager of First Citizens Asset Management Ltd advised on Thursday. He described the prospects from investing in debt at higher rates as "pretty good."
"We need more bonds, there aren't enough in the market. If interest rates would rise it is actually not so bad.for investors," Valley explained. "If you have money coming in and your cash flow, in coming in, is relatively stable and that will be tied to where the oil price is, generally you will have better investment options in the future. For our equity market that might be a little pressure because T&T is one big gas pump."
Valley who was at yesterday's FirstZone launch at the First Citizens Financial Centre, MovieTowne, said banks may be inclined to increase interest rates as the Central Bank had indicated that the repo rate had been increase."Unfortunately there is not enough excess liquidity in the market place. The excess liquidity in the market place really has to be soaked up before there can be economic reason for interest rates to rise.
"Having said that, the Central bank sent a signal that they want interest rates to increase, so banks may start increasing interest rates," he said.
About FirstZone
The product launched Thursday, FirstZone, is an interactive screen which provides investment information to customers.Valley said: "It is a wireless intranet zone where the public can connect and acquire investment information via an interactive screen.
"Potential investors can also connect to First Citizens via various social channels. Persons can use their smart phone to communicate digitally with us. We've included an additional level of security so you (the customer) can more safely transact through this new creative shopping window."First Citizens is the first local financial institution to offer this innovative technology.