The time is ripe for investors to get into the bond market and take advantage of the opportunities available to them, according to a leading Canadian bond expert.

Peter Kotsopoulos, executive vice-president and managing director of McLean Budden, and colleague Bradley Hicks, vice-president and head of fixed income, were in Bermuda last week meeting with clients of North Atlantic Asset Management, who manage investments for BF&M.

Mr. Kotsopoulos said the next three months would be an ideal time for cash sitting on the sideline to be put into buying into bonds, particularly US corporate and Government bonds.

And he is upbeat about the prospects for the Bermuda economy and market despite the general doom and gloom among investors on the Island.

"I don't see a disaster scenario as far as the Bermuda market goes," he said.

"I sense the people here are a little bit more pessimistic about the outlook for Bermuda.

"But there is certainly a positive wealth effect that hovers over the Bermuda economy and I think it is not as bad as the locals might think."

Mr. Kotsopoulos said that the global economy had enjoyed a strong period of sustained growth prior to the downturn hitting in 2008 and 2009 and despite the best efforts of the US Federal Reserve to revive it, inflation had not yet raised its head. He said that bonds were therefore an attractive proposition in the current climate.

Looking at the bigger picture, Mr. Kotsopoulos said a question mark had been raised over the financial position of debt-laden Greece and similar small European economies. However, he added that if the issue was overcome the US Government bond market would probably prosper through a liquidity injection by global central banks.

"I don't think the global economy can withstand another meltdown," he said.

"It would be very difficult to come up with another large spending or liquidity package and if it did then maybe inflation would be a problem.

"So for the bond market, pretty much getting any raise in interest rates would be a good buying opportunity."

Further ahead, Mr. Kotsopoulos views steady returns from the market — not at the same double-digit level experienced in the 1990s — but with a reasonable rate for bonds.