Investor confidence in Calvo’s fiscal policies reasons for positive value appreciation
FOR IMMEDIATE RELEASE
December 13, 2012
A recent study shows Guam on top of the state and local bond markets in America. This means Guam can save millions in future bond issuances, including refinancing existing debt. According to a report published on December 6, 2012 by Barclays, the recognized leader in municipal bond index research, Guam’s bonds appreciated more in value than those of any other state or territory over the last month and over all of 2012.
The island’s bonds appreciated in value by 2.24% just last month alone, and the total return year to date was 11.80%, besting all other states and territories. These figures compare to 1.29% and 8.12%, respectively, for the market as a whole. Higher bond prices translate directly into lower interest rates on future bond issuances, which will save Guam millions of dollars of future interest costs. This savings can be applied to both new bonds, and the refinancing of existing bonds.
Much of the price appreciation is due to increased investor confidence in Guam’s fiscal and economic future, a direct result of Governor Eddie Baza Calvo’s successful outreach to investors and his fiscal policies.
“This news shows Guam is going in the right direction,” Governor Calvo said. “In the long run, our policies will save the taxpayers millions of dollars. We will continue to cut spending and pay tax refunds. Wall Street has heard this message loud and clear, and have responded with record appreciation.”
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For more information, or to schedule an interview, call Phill Leon Guerrero at 929-7467.