Jamaica Opposition Surprises with Election Win

The Jamaica Labour Party’s Bruce Golding appeared set for a surprise victory in a general election that was apparently swayed by the government’s response to the most recent hurricane. Bonds were supported by a technical bid following a weekend maturity which is apparently being allocated back to the high yield credit. Locals have apparently accumulated dollars and there is pent up demand following an election induced investment hiatus. “The technicals in Jamaican bonds are in very good shape given that the 2007 maturity has just been paid,” Carl Ross, head of emerging markets research at Bear Stearns, tells LatinFinance. Audley Shaw is expected to take over at the finance ministry, a challenging job given the sovereign’s 130% of debt to GDP ratio. “Audley Shaw is very much in touch with the issues,” says Ross. “We believe the JLP has no intention of repudiating the debt,” he adds. Once the JLP forms a government, it has several pressing challenges. Stimulating growth is urgent. Bear has an underperform on the debt but is reviewing that.